Colgate-Palmolive (CL) has declared a cash dividend of $0.53 per share, with an ex-dividend date set for October 20, 2026. This announcement puts its income profile back in focus for shareholders.
Colgate-Palmolive’s share price has eased 4.2% over the past 90 days after a softer 1-month share price return of a 1.8% decline. It still shows a 12.3% share price gain year to date, with a 1-year total shareholder return of 14.6% pointing to momentum tied to its consistent dividends and cash generation story.
Scan for other income-focused opportunities that echo Colgate-Palmolive’s mix of dividends and scale by reviewing our hand picked 7 dividend fortresses alongside this payout update.
Colgate-Palmolive shares have cooled after a strong run, which puts a simple decision in front of you. Is the current dip already good enough value, or is patience the better bet before stepping in?
Most Popular Narrative: 1% Overvalued
Colgate-Palmolive is trading at a last close of $87.21 while the most followed narrative, according to rcb9, places fair value at $86.48 using a 7% discount rate. That slight gap keeps the focus on how one off charges, normalised earnings and long term assumptions are feeding into the current share price.
A staples business with those category shares and $3.77 billion of trailing free cash flow carries a low cost of equity. Net debt of $6.55 billion is real but modest against that generation. Worth noting: at a 6% discount this model returns $90.64, almost exactly the current price. The market is effectively discounting Colgate at 6% on these fundamentals.
See why 9 investors see Colgate-Palmolive as 1% overvalued.
Result: Fair Value of $86.48 (OVERVALUED)
Still, the story for Colgate-Palmolive can change quickly if North American organic sales stay weak or if another skin health impairment affects reported earnings.
Find out about the key risks to this Colgate-Palmolive narrative.
Another View: Colgate-Palmolive Through A Cash Flow Lens
That 1% overvalued tag from the narrative sits awkwardly beside the SWS DCF model, which puts Colgate-Palmolive’s fair value at $128.18 per share. On that measure, the stock screens as trading about 32% below the future cash flow value, so which signal should matter more to you?
For readers who want to see how the cash flow approach works in detail, Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Colgate-Palmolive for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 29 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed messages on Colgate-Palmolive so far. If you want to act before the next set of headlines, compare the 3 key rewards and 3 important warning signs with your own read of the numbers.
Looking for more Colgate-Palmolive style ideas?
If Colgate-Palmolive has sharpened your focus on quality and income, you can use this moment to broaden your watchlist before the next wave of opportunities moves without you.
- Target resilient income by reviewing a curated 7 dividend fortresses that lines up regular payouts with underlying business strength.
- Spot potential value gaps by scanning our 29 high quality undervalued stocks where quality fundamentals and pricing occasionally fall out of sync.
- Hunt for potential future leaders early through the 20 high quality undiscovered gems before broader market attention catches up.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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