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Is Colgate-Palmolive’s Dividend Hike Amid AI Spend and Downgrade Altering The Investment Case For Colgate-Palmolive (CL)?

Simply Wall St · 3d ago
  • Earlier this month, Colgate-Palmolive’s board declared a quarterly cash dividend of US$0.52 per share, payable on February 13, 2026, to shareholders of record as of January 21, 2026.
  • Around the same time, an Argus downgrade on profitability concerns contrasted with Colgate’s reaffirmed 2030 Strategy and stepped-up investments in AI, predictive analytics, and automation to support efficiency and brand strength.
  • We’ll now examine how rising raw material costs and tariff headwinds highlighted in the downgrade affect Colgate-Palmolive’s longer-term investment narrative.

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Colgate-Palmolive Investment Narrative Recap

To own Colgate-Palmolive, you need to believe its everyday brands, global reach, and cash generation can offset pressures from costs and competition. Argus’s downgrade centers the key near term risk on rising raw material and tariff costs squeezing margins, while the main potential catalyst remains Colgate’s ability to convert its 2030 Strategy and efficiency push into sustained profit growth. The latest dividend declaration does not materially change either story.

The most relevant recent announcement here is Colgate’s Q3 2025 update, where the company reiterated its 2030 Strategy and highlighted investments in AI, predictive analytics, and automation. These efforts tie directly into the current profitability debate, because any gains in efficiency and smarter pricing could help counter raw material and tariff headwinds and support the long term growth and margin ambitions that underpin the investment case.

Yet even with trusted brands and digital investments, investors still need to weigh the risk that rising raw material and packaging costs could...

Read the full narrative on Colgate-Palmolive (it's free!)

Colgate-Palmolive's narrative projects $22.4 billion revenue and $3.5 billion earnings by 2028. This requires 3.8% yearly revenue growth and about a $0.6 billion earnings increase from $2.9 billion today.

Uncover how Colgate-Palmolive's forecasts yield a $87.21 fair value, a 9% upside to its current price.

Exploring Other Perspectives

CL 1-Year Stock Price Chart
CL 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community span roughly US$87 to about US$122 per share, showing how far apart reasonable views can be. When you set those side by side with concerns about sustained raw material and tariff pressure on margins, it underlines why it can help to weigh several independent viewpoints before deciding how Colgate-Palmolive fits into your own expectations.

Explore 4 other fair value estimates on Colgate-Palmolive - why the stock might be worth just $87.00!

Build Your Own Colgate-Palmolive Narrative

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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.