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Why Colgate-Palmolive Remains an Overlooked Dividend King

Vardah Gill

Tue, August 18, 2026 at 2:45 PM GMT+3 5 min read

Colgate-Palmolive Company (NYSE:CL) is often overlooked when investors discuss established dividend stocks. Names such as Coca-Cola, Procter & Gamble, and Johnson & Johnson tend to dominate those conversations. Colgate has a track record that deserves to be mentioned alongside them. It is a Dividend King, with 63 consecutive years of dividend increases and uninterrupted dividend payments dating back to 1895.

There is a straightforward reason the stock does not get as much attention. Colgate is not growing at a rapid pace, and its dividend yield is not especially high. Investors have to look past those points to see what makes the company appealing. It has a durable consumer business, well-known brands, and a long record of returning cash to shareholders.

A Dividend Record That Speaks for Itself

Colgate-Palmolive Company (NYSE:CL) raised its quarterly dividend to $0.53 per share in 2026 from $0.52. That takes the annualized payout to $2.12 per share. The size of the increase is not the main story here. What stands out is how long the company has kept doing it. Colgate has raised its dividend for more than six decades and remains firmly in Dividend King territory.

The products themselves also give Colgate-Palmolive Company (NYSE:CL) some stability. Toothpaste, toothbrushes, personal care products, and pet food are everyday purchases. Even when consumers become more careful with their money, these are not the easiest items to cut. Colgate also remains a major player in oral care, with a 41.3% global toothpaste market share and a 32.7% share of the manual toothbrush market year to date in 2026.

For a dividend investor, that matters. The company is working with a customer base that needs its products on a regular basis, which helps keep demand relatively steady.

Q2 Earnings Show the Business Is Still Generating Cash

Colgate-Palmolive Company (NYSE:CL)'s latest earnings report adds some support to that dividend record. The second quarter was solid overall. Net sales increased 4.9% from a year earlier to $5.36 billion, while organic sales rose 2.4%. Base Business earnings per share climbed 8% to $0.99 from $0.92. Gross margin also improved, expanding by 140 basis points to 61.5%.

The GAAP numbers were less encouraging, with diluted EPS down 5% to $0.86. Looking beneath that figure gives a somewhat better picture. On a Base Business basis, operating profit, operating margin, net income, earnings per share and free cash flow all increased from a year earlier, according to management.

The cash flow numbers are especially important for the dividend. During the first six months of 2026, Colgate-Palmolive Company (NYSE:CL) generated $1.74 billion in operating cash flow, compared with $1.48 billion a year earlier. After $266 million in capital expenditures, free cash flow before dividends came to $1.48 billion, up from $1.25 billion in the same period of 2025.

The company paid $879 million in dividends during the first half of the year, leaving free cash flow well above the amount needed to cover the payout. That is an important detail. A long dividend streak looks good on paper, but ultimately the business needs to generate enough cash to keep funding it.

Why Investors May Be Missing Colgate

The problem for Colgate-Palmolive Company (NYSE:CL) is that there is not much of a headline-grabbing story around its dividend. At $2.12 a year, the dividend does not provide the kind of starting yield that attracts investors focused on high current income. Those looking for double-digit dividend growth or a much higher yield may simply have other stocks higher on their lists.

There is also no getting around the fact that Colgate is a mature business. Organic sales increased just 2.4% in the second quarter, while North American organic sales fell 3%. That is not the sort of growth that usually draws investors looking for the next fast-growing consumer name.

For income investors, though, a mature business can have its own advantages. Colgate-Palmolive Company (NYSE:CL) does not need to grow revenue at a breakneck pace to remain a useful dividend stock. Its established brands and global presence give it a large customer base and recurring demand.

Management also left its 2026 sales outlook unchanged. It now expects mid-single-digit Base Business EPS growth, compared with its previous expectation of low- to mid-single-digit growth.

A Quiet Dividend King Worth a Closer Look

Colgate-Palmolive Company (NYSE:CL) may not have the same profile as some of the better-known Dividend Kings, but its recent numbers give investors a reason to take a closer look. Operating cash flow and free cash flow both improved in the first half of 2026. That leaves the company in a good position to fund its dividend while continuing to invest in the business.

There are still things to watch. Growth remains modest, and the decline in North American organic sales is not something investors should ignore. At the same time, Colgate has everyday brands, recurring demand, and a dividend history that stretches back more than six decades. For investors who care more about consistency than rapid growth, that combination remains relevant.

Colgate may not be the first dividend stock investors think of, but its long record and improving cash flow make a strong case for giving the stock a closer look.

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