Colgate-Palmolive Company (CL): Why This Investment Is a Top Dividend Stock

Colgate-Palmolive Dividend data by YCharts.

One big problem that hit Colgate recently was the devaluation of the Venezuelan bolivar currency. Colgate failed to be as proactive about the potential for a devaluation as The Clorox Company (NYSE:CLX), which, even before the devaluation took place, had already estimated the impact of a drop in the value of the bolivar on its earnings per share by the time it released its earnings in early February. But Colgate did note that its growth projections were contingent on no devaluation taking place, and shortly after the devaluation occurred, Colgate quickly came out with a total impact of around $0.50 per share on 2013 earnings.

When will dividends rise again?
Colgate-Palmolive just raised its dividend by almost 10%, extending its streak of annual increases to an even half-century. Colgate has been methodical about its annual increase, so don’t expect another bump up until next spring. But, given its ability to boost its payout even after an unexpected hit from the Venezuela devaluation, Colgate-Palmolive clearly has the resiliency needed to remain a Dividend Aristocrat for a long time.

The article Why Colgate-Palmolive Is a Top Dividend Stock originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Procter & Gamble.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.