Colgate Announces Dividend Increase and New $5 Billion Share Repurchase Program

Rhea-AI Summary

Colgate-Palmolive (NYSE:CL) has announced two significant shareholder-friendly initiatives. The company's Board of Directors has approved a 4% increase in quarterly dividend from $0.50 to $0.52 per share, effective second quarter 2025. The new annual dividend rate will be $2.08, up from $2.00 previously. The dividend will be paid on May 15, 2025, to shareholders of record as of April 17, 2025.

Additionally, the Board has authorized a new $5 billion share repurchase program, replacing the previous program of the same amount from 2022. The company will begin repurchasing shares after March 20, 2025, through open market or private transactions. As of January 31, 2025, Colgate had approximately 812 million shares outstanding.

These actions reinforce Colgate's commitment to returning value to shareholders, with the company maintaining an uninterrupted dividend payment history since 1895.

Positive

• New $5 billion share repurchase program authorized
• 4% dividend increase to $0.52 quarterly per share
• Consistent dividend payment history since 1895 demonstrates financial stability
• Strong commitment to returning value to shareholders

Negative

• Share repurchase program merely replaces existing $5B program, not additional capital return

Insights

Financial Analyst

Colgate-Palmolive's dual announcement represents a meaningful commitment to shareholder returns. The 4% dividend increase—from $0.50 to $0.52 quarterly ($2.08 annually)—extends the company's remarkable 130-year streak of uninterrupted dividend payments since 1895. At the current share price, this translates to a forward dividend yield of approximately 2.3%.

The new $5 billion share repurchase program effectively refreshes the previous 2022 authorization of the same size. With 812 million shares outstanding, this repurchase capacity represents approximately 6.8% of Colgate's current market capitalization. The buyback will commence after March 20, 2025, providing potential support for the stock price and enhancing earnings per share through share count reduction.

These capital return initiatives indicate management's confidence in Colgate's financial stability and cash flow generation capabilities. For a mature consumer staples company like Colgate-Palmolive, maintaining this balance between reinvestment and shareholder returns is crucial. The consistency of these payments across economic cycles underscores the defensive qualities that have long characterized the company's business model.

These measures align with Colgate's long-standing capital allocation strategy, offering shareholders the reliability they've come to expect from this consumer products stalwart while maintaining financial flexibility for potential growth initiatives in oral care, personal care, home care and pet nutrition segments.

NEW YORK--(BUSINESS WIRE)-- The Board of Directors of Colgate-Palmolive Company (NYSE:CL) today increased the quarterly common stock cash dividend to $.52 up from $.50 per share. The increase will be effective in the second quarter, 2025. The Board declared that the second quarter dividend is to be paid on May 15, 2025 to shareholders of record as of April 17, 2025. On an annual basis, the new dividend rate is $2.08 vs. $2.00 per share previously. The Company has paid uninterrupted dividends on its common stock since 1895.

Share Repurchase Program

The Board of Directors today also authorized the repurchase of shares of the Company's common stock having an aggregate purchase price of up to $5 billion under a new share repurchase program, which replaced the Company's previous $5 billion share repurchase program authorized in 2022. Repurchases under the new program will be made from time to time in open market or privately negotiated transactions at the Company’s discretion and in accordance with requirements of the Securities and Exchange Commission. The Company will commence the repurchase of shares of the Company’s common stock under the new program after March 20, 2025. As of January 31, 2025, the Company had approximately 812 million shares of common stock outstanding.

This dividend increase and the new share repurchase program reflect a continuation of the Company's long history of consistently returning cash to shareholders.

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Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. We are recognized for our leadership and innovation in promoting sustainability and community wellbeing, including our achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately 1.8 billion children and their families since 1991. For more information about Colgate’s global business and how we are building a future to smile about, visit www.colgatepalmolive.com. CL-D, CL-C

View source version on businesswire.com: https://www.businesswire.com/news/home/20250320374072/en/

Investor Relations: investor_relations@colpal.com

Communications: colgate_palmolive_media_inquiry@colpal.com

Source: Colgate-Palmolive Company

FAQ

What is the new quarterly dividend amount for Colgate (CL) stock in 2025?

Colgate's quarterly dividend will increase to $0.52 per share from $0.50, effective second quarter 2025.

When will Colgate (CL) start its new $5 billion share repurchase program?

Colgate will commence the share repurchase program after March 20, 2025.

How long has Colgate (CL) maintained its dividend payment streak?

Colgate has paid uninterrupted dividends on its common stock since 1895.

What is the annual dividend rate for Colgate (CL) stock after the 2025 increase?

The new annual dividend rate will be $2.08 per share, up from $2.00 previously.

How many shares of Colgate (CL) stock were outstanding as of January 2025?

Colgate had approximately 812 million shares of common stock outstanding as of January 31, 2025.