Dividend-king stock: Colgate-Palmolive is a dividend king stock when it comes to giving massive incentives in the form of a dividend to its shareholders. In the fiscal FY22, the company alone paid a dividend of overall 4,000% to its investors. Currently, its dividend yield is around 2.5%. With the second quarter in offing, this consumer goods company is most likely to surprise its investors with an dividend for the fiscal FY23. Colgate shares have witnessed strong growth in Q2 of FY23 and so far in the current year.
On Tuesday, Colgate shares closed at ₹1600.40 apiece up by ₹20.95 or 1.33% on BSE. The company’s market valuation is around ₹43,528.58 crore.
Colgate is a large-cap stock trading under the ‘A’ group on BSE.
During the quarter from July to September 2022, Colgate shares climbed by 9.5% on Dalal Street. From its 52-week low of ₹1,375.55 apiece which was recorded on January 25, 2022, the stock has managed to advance by over 18% till now. Year-to-date, the shares have surged by over 11% on D-Street.
Colgate shares touched a 52-week high of ₹1,695 apiece on September 2, 2022.
In FY22, the company paid a total of ₹40 per equity share dividend to its shareholders. During this financial year, the first interim dividend of ₹19 per share was announced on October 25, 2021, and paid on and from November 22, 2021. The second interim dividend was announced on April 28 this year to the tune of ₹21 per equity share and was paid on and from May 25, 2022.
Thereby, Colgate announced a dividend of 4,000% for the financial year FY22.
At the current market price, Colgate’s dividend yield is around 2.5%.
Possibilities are that Colgate may announce an interim dividend for FY23 in a meeting scheduled on October 20.
In its regulatory filing on October 3, Colgate said, “we wish to inform you that a Meeting of the Board of Directors of the Company will be held on Thursday, October 20, 2022, inter alia, to approve and take on record the Unaudited Financial Results for the quarter ended September 30, 2022, and to consider the
declaration of interim dividend (if any).”
Further, the company also announced November 1, 2022, as the record date for the payment of the interim dividend if declared by the board in the meeting.
That said, Colgate will also announce its second quarter results for FY23 on October 20.
In its Q2FY23 preview report, Prabhudas Lilladher expects Colgate’s revenue growth at 3.5% in Q2FY23 owing to a 3% volume decline on the base of 4.2% last year. Calibrated price hikes continue to be taken to combat high inflation. Gross Margins to contract by 160 basis points during YoY. It added, “We estimate 0.6% EBITDA degrowth and margins of 28.5%.”
Analysts at Prabhudas Lilladher in the preview report have kept an ‘Accumulate’ rating on Colgate stock with a target price of ₹1,702 pieces.
During the first quarter of FY23, Colgate posted a net profit of ₹209.67 crore down by 10.1% yoy, while revenue from operations stood at ₹916.60 crore higher by 6.95% yoy.
Colgate is a market leader in Oral Care in the country, that seeks to deliver sustainable, profitable growth and maximize shareholder returns, and provide its people with an innovative and inclusive work environment.
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