Saturday, October 22, 2011

In a recession, people still need to ...... brush their teeth

I have decided to start my Global Dividend Growth Portfolio with 3 core stocks. These core stocks will be integral to my dividend compounding strategy over the next 5 years. The first core stock will be Colgate-Palmolive. In a recession, people still need to brush their teeth.   
Colgate-Palmolive Company (Colgate) is a consumer products company. Colgate’s products are marketed in over 200 countries and territories. The Company manages its business in two product segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care segment is operated through four operating segments: North America, Latin America, Europe/South Pacific and Greater Asia/Africa, all of which sell to a variety of retail and wholesale customers and distributors. During the year ended December 31, 2010, the revenues of Oral, Personal and Home Care products accounted for 43%, 22% and 22%, respectively, of its total revenues. During 2010, the revenues of Pet Nutrition products accounted for 13% of the Company’s total revenues. 

Dividend Yield: 2.5%
Uninterrupted Dividend Payment: since 1895 (OMG! o_O)
Uninterrupted Yearly Dividend Increase: 48 years
Payout Ratio: 45%
5-year dividend growth rate: 12%
Net Profit Margin: 14.86%
P/E Ratio: 19.3
Beta: 0.46
Sector: Consumer Staples

You can view the Dividend History here.

I will be initiating a position in the next few weeks, depending on the outcome of the Euro Summit over the weekend.

Peace Out,
Dividend Warrior


Anonymous said...

Im new here in Singapore and I find your blog very informative. I am interested in stock trading here in SG and I am hoping if you can write about how to get started (opening cdp, which bank offers a better trading platform etc..)
Thank you

Anonymous said...

hi i'm just curious about one thing.
are you not afraid of the effects of exchange rates of US$ to S$? It could well take away all your dividends and more..

FoodieFC said...

For me, I use other brands. But the dividends seems quite small at 2%

Calvin said...

Dividend Warrior,

Congrats on your first step into global stock market. Now you know why I have all these American stocks!

Anyway, the dividend yield may look quite small initially, however they are very steady dividend growers.

Another thing you can look at in covered calls to boost your income from the stocks.


Martin said...

Dividend investing is really powerful investment vehicle, mainly in downturn markets like we are seeing these days. Most of the companies you are mentioning on your web are dragged down with the market for no reason (by panic only), so you can buy them cheap and increase your dividend yield on cost. And Colgate is one of those good quality companies and people will use their product no matter what. I agree on this and I invest into dividend stock in my own portfolio too. Happy Investing!

Martin said...


2% may look small, but considering dividend growth ratio and its security (the company was paying it since 1895 and increasing it for 48 years!!! every year the dividend raised by 2.5%! in ten years this dividend on your investment will actually be 2.5% plus capital growth... and with dividend reinvesting - it is still great deal. Where else you can get better "interest"?

Homecare said...

The design of the blog is too good.I was very pleased to find this site. I definitely enjoyed reading every little bit of it

valmont said...

In a recession, people still need to ...... brush their teeth < same idea i have..

2 answers (to ppl still need to):
1. Smoke cigarettes
2. Make a phone call (for lobang)

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