Colgate-Palmolive Co. (CL) on Thursday boosted its quarterly
dividend 6.9%, joining a growing list of companies that have raised
payouts to shareholders in recent months.
The 4-cent increase to 62 cents a share will cost the company
about $76.7 million more each year. Colgate has paid uninterrupted
dividends on its common stock since 1895.
Many companies have launched shareholder-friendly initiatives
like dividend increases in recent months as a way to reward
investors while making use of growing cash stockpiles.
The higher payout comes as Colgate and other consumer products
companies look forward to some relief from rising commodity costs,
which have pressured the company's results over the past year.
Colgate recently said it expects ongoing cost savings programs
and higher prices, many of which have already been implemented, to
help increase gross margins.
The toothpaste giant on Thursday separately disclosed the
election of Google Inc. (GOOG) Chief Business Officer Nikesh Arora
to its board effective March 15. Colgate said Arora, 44, will bring
strong knowledge of finance and information technology to its
board.
Shares were recently up 86 cents at $93.69 midday Thursday, in
line with the broader market. The stock has climbed 20% over the
past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com