Colgate-Palmolive (NYSE: CL) is a new buy from Nilus Mattive. The editor of Dividend Superstars states, "The time is right to add this great consumer products firm to our portfolio."
"Colgate-Palmolive is a company you undoubtedly know. It makes many very popular household products including its eponymous toothpaste and detergent brands, as well as the Science Diet family of pet food.
"But in addition to having a wide stable of recession-resistant brands, the company also has a large presence not just in the U.S. but around the world.
"In fact, more than half of its revenue comes from overseas markets. Latin America accounts for about a third of sales, as does Europe and the South Pacific. Asia/Africa make up the rest.
"The company has also been making very smart moves to branch out into faster-growing product segments. One example is its May 2006 purchase of Tom's of Maine, a leading maker of natural household products such as deodorant and toothpaste.
"If you shop at places like Whole Foods, you know just how strong demand is for these items (and how expensive they are!)
"Perhaps the best part about Colgate is that it is now starting to enjoy the spoils of a multi-year restructuring program that began in late 2004. The company reduced its workforce, closed factories, streamlined its marketing efforts, and targeted higher-growth product lines and regions.
"In 2008, a challenging year for most companies, CL's sales gained 11%. And even this year, I expect another small rise. Profits have been increasing, too.
"On the dividend front, Colgate is a tremendous performer. The company has steadily increased its payments in each of the last 46 years, with the latest hike coming in February. You can also take comfort in the fact that CL has paid non-stop since 1895!
"Investors have really sold off the shares. As a result, I think the time is right to add this great consumer products company to the core income portion of the portfolio, and I recommend buying at $60 or better."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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