The best dividend stocks to buy now are those that consistently pay shareholders. But while dividend growth investing is arguably one of the best ways for people to build long-term income and wealth over time, that doesn’t mean selecting quality companies is easy.
After all, the key to long-term success involves finding the best dividend stocks to buy now with strong management teams, consistent and growing cash flows, safe debt levels, and dividend-friendly corporate cultures.
A popular strategy for low risk investors is to screen for quality by looking to dividend kings, or the best dividend stocks that have proven themselves capable of growing over many years. Taht includes different economic, political, and interest rate environments — all while rewarding dividend investors with steady payout growth.
Let’s take a look at Colgate-Palmolive (NYSE:CL), which with 54 straight years of increasing payments, is one of the few stocks to belong to this exclusive club of low-risk blue chips. CL stock is definitely one of the best dividend stocks to buy now.
We’ll also find out whether or not Colgate stock has future growth plans that mean it could be worth adding to a diversified dividend growth portfolio at today’s valuations.
Colgate-Palmolive Among the Best Dividend Stocks to Buy Now
Founded in 1806 in New York City by William Colgate as a starch, soap, and candle business, Colgate-Palmolive has grown into one of the world’s largest consumer products conglomerates today.
In fact, the company’s 36,000 global employees sell its world famous brands (such as Colgate, Palmolive, Protex, Speed Stick, Ajax, Irish Spring, Sanex, Hill’s, and Softsoap) in 223 countries through four main business segments.
In addition to a highly diversified portfolio of well-known brands, Colgate’s sales, earning, and free cash flow (FCF) are highly diversified by geography (75% of sales outside the U.S.), including a strong presence in faster growing emerging markets.
As importantly, Colgate has been in most of these developing nations for more than 70 years (entering Mexico, Brazil, and India in 1925, 1927, and 1937, respectively), meaning that its brands are very well known and trusted.
That makes Colgate an rather low risk way to gain international and emerging market exposure, especially as rising living standards increase demand for defensive consumer products such as toothpaste, soap, lotions, and pet foods. These are important factors that make it one of the best dividend stocks to buy now.
CL Stock Analysis – Growth and Valuation
The consumer products industry is considered highly recession resistant due to the fact that demand for toothpastes and skin care products generally grows over time (with population growth) and relatively inelastic, even during economic downturns.