Should You Buy Colgate-Palmolive for It Incredibly Reliable Dividend?

Colgate-Palmolive (NYSE:CL) makes for a dependable dividend stock to own. This month, the company announced that it was rising its dividend again – for the 61st consecutive year. It has been paying dividends since 1895. It's an impressive track record that gives long-term investors confidence in the ability for Colgate-Palmolive to continue raising its rates for the foreseeable future.

The consumer goods company sells a broad range of products for oral care, personal care, and nutrition, with its products being staples in many homes. And so whether there's a downturn in the markets or rising inflation, there's generally going to be strong demand for its products. That has allowed the company to continuously raise its dividend.

However, the dividend increases aren't often all that significant. This latest increase is just a one-cent bump up to $0.48. That's far less than the rate of inflation and puts its yield at 2.7%. That's higher than the S&P 500 average of 1.7%, but investors can also find higher-yielding stocks out there than Colgate-Palmolive.

The value in the stock is in its stability. It averages a beta of less than 0.5, meaning that it won't go on the stock market's wild rides and is more stable. Last year, while the S&P 500 fell 19%, Colgate-Palmolive's stock declined by 8%. So far in 2023 that trend hasn't continued as it has been underperforming the index thus far. However, in the long run, it's likely to remain a stable investment.

And so if your priority is stability and a decent stream of dividend income, Colgate-Palmolive can make for a good buy right now.