What Makes Colgate-Palmolive a Hard Company to Beat

Colgate-Palmolive Company (NYSE:CL) is one of the Best Wide Moat Dividend Stocks to Invest in.

Becoming the world’s most chosen personal care brand is no small feat. Colgate-Palmolive Company (NYSE:CL) is present in over half of all households globally, which reflects strong leadership, a deep understanding of consumers, and steady investment in innovation and branding.

Colgate-Palmolive Company (NYSE:CL) has carefully built its flagship Colgate brand since the early 1800s, transforming it from a simple dental powder into a global leader in oral care, now available in more than 200 countries. The brand is backed by solid research and development and offers a wide range of products.

Colgate holds a 20 percent share of the global toothpaste market, which grew at an average rate of 5 percent annually from 2009 to 2023. That makes it 2.5 times larger than its closest competitor. Its dominance is even stronger in some regions, with about 53 percent market share in Australia and 77 percent in Mexico. Oral care contributes roughly half of Colgate-Palmolive Company (NYSE:CL)’s $20 billion in global revenue, making the Colgate brand the core of the company’s competitive strength.

After past underinvestment, the company has boosted marketing and innovation, launching new products like whitening pens, which have reignited growth. With solid retail ties and ongoing investment, Colgate-Palmolive Company (NYSE:CL) is well-positioned to adapt to changing consumer needs and continue delivering value.

In addition, the company is a strong dividend payer, having raised its payouts for 62 consecutive years. It has never missed a dividend since 1895. It offers a quarterly dividend of $0.52 per share and has a dividend yield of 2.36%, as of June 24.

While we acknowledge the potential of CL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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