Colgate-Palmolive (CL): When Good News Might Be Bad News for the Economy
When thinking of high-flying, must-own assets in a roaring bull market, few would immediately turn their attention to Colgate-Palmolive (CL). Known for its everyday essentials, its more akin to the comforting background hum of a portfolio than its headline act.
Indeed, Colgates primary allure has always been itsdependability. Everyone needs toothpaste. Many will reach for a Colgate product when doing their shopping, making it a staple in both households and many investment portfolios.
Further cementing its case, Colgate boasts a forward dividend yield of 2.60%. Admittedly, this yield isn't going to set the world alight, especially when the payout ratio sits at a somewhat elevated 55.60%. But lets not overlook the companys impressive track record of 61 years of consecutive dividend increases. Thats reliability by any measure.
Yet here lies the conundrum. In a bullish frenzy, when everyone seems enamored with the latest tech IPO or a groundbreaking innovation in a different sector, excessive bullishness on a stock like CL is a little... odd. It suggests that investors might be becoming wary of the broader market, retreating to the safety of stalwarts like Colgate as storm clouds gather on the horizon.