15 Best S&P 500 Dividend Stocks to Buy Now

12. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 62

Colgate-Palmolive Company (NYSE:CL) ranks twelfth on our list of the best dividend stocks in the broader market. The American multinational consumer products company is known for its presence in Oral Care, Personal Care, Home Care, and Pet Nutrition. The company continues to optimize its operations while prioritizing sustainability and expanding its product portfolio. Its commitment to making all packaging recyclable by 2025 reflects growing environmental concerns among consumers and regulators. In addition, through collaborations in renewable energy, the company is adapting its business model to align with evolving market trends and regulatory requirements.

In its FY24 earnings report, Colgate-Palmolive Company (NYSE:CL) surpassed $20 billion in annual revenue for the first time, marking a 4% increase from the previous year. This also represented the sixth consecutive year of organic sales growth within or above its target range of 3% to 5%. Strong sales performance and operational efficiency contributed to a solid bottom line, with net income and earnings per share showing double-digit growth from 2023.

Colgate-Palmolive Company (NYSE:CL) pays a quarterly dividend of $0.50 per share, yielding 2.22%, as of February 27. With a 62-year history of consecutive dividend increases, it ranks among the best dividend stocks. This consistent growth is backed by strong cash flow generation. In FY24, the company reported over $4 billion in operating cash flow, up 10% year-over-year, while free cash flow rose to more than $3.5 billion from $3 billion in the prior year. Reinforcing its commitment to shareholder returns, the company distributed $3.4 billion through dividends and share repurchases during the fiscal year.