Sunday, April 22, 2012

Colgate-Palmolive: Another good one

Here's a blast from the past: Colgate-Palmolive (ticker: CL).  My stocks are starting to look like the Nifty Fifty from half a century ago.  Here are the stats:

Price: $99
Dividend: $2.48
Est. EPS this year: $5.40
Est. EPS next year: $5.90
Book value: $4.95

Not so much a growth story, more of a blue chip that pays out nearly half of income in dividends.  But look at the return on equity: they make more each year than is invested in the company.  What a fine business!

My projections show a future (5-year) price of $486 while collecting $35 in dividends.  And you use their products every day.

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