“Colgate-Palmolive Co. (CL 119.33 NYSE - yield 2.30%) announced a stock split just last week. Even though it’s a March split,I’m going to recommend CL and buy it for the 2 for 1 portfolio early next week. Colgate-Palmolive has been a household name in the U.S. for over 200 years.
“You probably already know Colgate makes toothpaste, but it also makes liquid hand soaps, shower gels, bar soaps, deodorants, antiperspirants, shampoos and conditioners. In addition, CL has a pet nutrition division operating under the Hills Science Diet brand name. CL is not a bargain-basement stock, with a trailing P/E of 22.5 and a price-to-book ratio of 24.7. However, it’s hard to go wrong with such a well established, well run business generating a net profit margin of over 15%, year after year, while growing earnings at a rate north of 10% a year for the last five years. The 2.53% dividend yield and 0.44 beta are also good reasons to like this stock.”
Neil MacNeale, 2 for 1 Stock Split Newsletter, 888-775-4824, 3/15/13
