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The S&P 500 (^GSPC -0.38%) dividend yield is hovering around a historic low near 1%. If you're trying to generate more passive income, you don't have to settle for that. Some of the best-known consumer brands offer higher yields.

Three quality dividend stocks I'd buy this month are McDonald's (MCD -1.52%), Colgate-Palmolive (CL -1.47%), and Procter & Gamble (PG -0.33%). These stocks yield 2.3% or more, and their dividends are supported by strong free cash flow.

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1. McDonald's At the time of this writing, shares of McDonald's are trading about 23% below their recent highs, pushing the forward dividend yield up to 2.89% -- nearly three times the market average.

The sell-off stems from soft U.S. comparable sales, which rose just 0.8% year over year in the second quarter. Notably, management didn't place the blame on high gas prices or other external headwinds. They pointed to execution issues -- and that kind of determination to improve operations is what can drive excellent returns for shareholders over time.

McDonald's remains a global powerhouse with a profitable business model, generating revenue from fees paid by franchised restaurants. About 95% of its restaurants are franchised. Over the last year, it generated $7.8 billion in free cash flow on $28 billion in revenue and paid out 67% of free cash flow as dividends.

Management also sees room to expand margins by reducing complexity and improving restaurant efficiency and service times. The dividend has grown about 7% annually over the past five years, and stronger margins should help maintain that trend.

With a 49-year streak of dividend increases and a renewed focus on productivity, McDonald's looks well-positioned to reward patient income investors.

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2. Colgate-Palmolive Colgate-Palmolive is trading roughly 17% off its recent highs, lifting its forward dividend yield to 2.35%. It's a classic staples business: steady demand, resilient cash flow, and a long history of annual dividend growth.

Trailing-12-month revenue rose 5% year over year to $21 billion, supported by premium products like Hill's pet nutrition and strength in international markets.

Colgate is a global leader in toothpaste, with 41% market share in 2025. Selling everyday essentials in oral and personal care generates reliable sales and the free cash flow that funds consistent dividend growth. TTM free cash flow increased 14% to $3.8 billion, and the company paid out 43% of that free cash flow as dividends.

Colgate has raised its dividend for 63 consecutive years. The dividend has grown at about 3% annually over the last five years. With management focused on lowering costs, including the use of artificial intelligence (AI) tools, to support margin expansion, investors should expect continued dividend growth over the long term.

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3. Procter & Gamble Procter & Gamble is down about 18% from its highs, bringing its forward dividend yield to 2.96%. That's compelling for a company whose products consumers buy year-round, in good economies and bad.

Growth has cooled amid sluggish consumer spending, but organic sales still increased 1% year over year. P&G is also dealing with margin pressure from higher costs, which has weighed on margins. Even so, adjusted earnings still grew 1%, showing the business can absorb turbulence.

Big consumer brands inevitably hit slower patches -- but P&G's dividend track record is hard to match. It has paid a dividend for 136 years and raised it for 70 straight years, including through every recession in the past half-century.

In fiscal 2026 (ending in June), P&G returned $10 billion in dividends out of $15 billion in free cash flow, a payout ratio of roughly 67%. With a five-year dividend growth rate of around 5% and a portfolio anchored by brands like Tide, Gillette, and Oral-B, P&G's dividend streak appears well-positioned to continue.

Baypointe Partners LLC reduced its stake in Colgate-Palmolive Company (NYSE:CL – Free Report) by 80.0% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 10,000 shares of the company’s stock after selling 40,000 shares during the quarter. Colgate-Palmolive makes up approximately 2.2% of Baypointe Partners LLC’s investment portfolio, making the stock its 14th largest position. Baypointe Partners LLC’s holdings in Colgate-Palmolive were worth $917,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also modified their holdings of CL. Kemnay Advisory Services Inc. acquired a new position in shares of Colgate-Palmolive during the 4th quarter valued at about $25,000. CBIZ Investment Advisory Services LLC increased its position in Colgate-Palmolive by 86.7% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 323 shares of the company’s stock worth $26,000 after purchasing an additional 150 shares during the last quarter. TD Capital Management LLC raised its stake in Colgate-Palmolive by 61.4% during the fourth quarter. TD Capital Management LLC now owns 326 shares of the company’s stock worth $26,000 after purchasing an additional 124 shares during the period. Triumph Capital Management boosted its holdings in Colgate-Palmolive by 62.9% in the 4th quarter. Triumph Capital Management now owns 329 shares of the company’s stock valued at $26,000 after purchasing an additional 127 shares during the last quarter. Finally, Jessup Wealth Management Inc acquired a new position in Colgate-Palmolive in the 4th quarter valued at about $26,000. 80.41% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling In related news, CEO Noel Wallace sold 161,021 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $91.92, for a total transaction of $14,801,050.32. Following the completion of the transaction, the chief executive officer directly owned 362,231 shares of the company’s stock, valued at $33,296,273.52. The trade was a 30.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Panagiotis Tsourapas sold 10,000 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $92.05, for a total value of $920,500.00. Following the completion of the sale, the chief operating officer directly owned 64,901 shares in the company, valued at $5,974,137.05. This represents a 13.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 175,191 shares of company stock valued at $16,110,903 in the last three months. 0.43% of the stock is owned by corporate insiders.

Colgate-Palmolive Price Performance CL stock opened at $89.89 on Friday. The company has a market capitalization of $71.66 billion, a PE ratio of 35.67, a P/E/G ratio of 4.20 and a beta of 0.33. Colgate-Palmolive Company has a 12-month low of $74.54 and a 12-month high of $99.33. The company has a current ratio of 1.03, a quick ratio of 0.67 and a debt-to-equity ratio of 13.82. The business’s fifty day moving average price is $91.95 and its 200 day moving average price is $89.88. Colgate-Palmolive (NYSE:CL – Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The company reported $0.99 EPS for the quarter, beating the consensus estimate of $0.95 by $0.04. The business had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.36 billion. Colgate-Palmolive had a net margin of 9.68% and a return on equity of 464.63%. The business’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.92 earnings per share. On average, sell-side analysts anticipate that Colgate-Palmolive Company will post 3.87 EPS for the current year.

Colgate-Palmolive Announces Dividend The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Monday, July 20th were issued a $0.53 dividend. The ex-dividend date was Monday, July 20th. This represents a $2.12 dividend on an annualized basis and a yield of 2.4%. Colgate-Palmolive’s dividend payout ratio (DPR) is 84.13%.

Wall Street Analyst Weigh In A number of analysts have recently issued reports on the stock. Jefferies Financial Group restated a “hold” rating on shares of Colgate-Palmolive in a report on Monday, August 3rd. Morgan Stanley reiterated an “overweight” rating and issued a $104.00 price objective on shares of Colgate-Palmolive in a report on Monday, August 3rd. Citigroup increased their price objective on Colgate-Palmolive from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Weiss Ratings reissued a “hold (c+)” rating on shares of Colgate-Palmolive in a research note on Friday, July 31st. Finally, Sanford C. Bernstein restated a “market perform” rating on shares of Colgate-Palmolive in a research report on Thursday, August 13th. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $99.00.

View Our Latest Report on CL

Colgate-Palmolive Profile (Free Report)

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.

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Colgate-Palmolive remains a Buy, offering defensive qualities, a resilient global portfolio, and an attractive margin of safety at current valuation. Q2 results showed 4.9% net sales growth and 8% base EPS growth, with strong performance outside North America and continued innovation driving market share gains. CL maintains robust free cash flow, supports a 2.36% dividend yield, and continues share repurchases, underpinned by manageable debt and disciplined capital allocation.

Algert Global LLC reduced its position in shares of Colgate-Palmolive Company (NYSE: CL) by 12.0% in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 73,454 shares of the company's stock after selling 9,986 shares during the quarter. Algert Global LLC's holdings in Colgate-Palmolive

Allstate Corp lessened its position in Colgate-Palmolive Company (NYSE:CL – Free Report) by 36.5% during the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 51,406 shares of the company’s stock after selling 29,541 shares during the period. Allstate Corp’s holdings in Colgate-Palmolive were worth $4,713,000 as of its most recent filing with the SEC.

Several other large investors have also made changes to their positions in CL. Vanguard Group Inc. increased its position in shares of Colgate-Palmolive by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 83,947,987 shares of the company’s stock worth $6,633,570,000 after purchasing an additional 1,026,985 shares in the last quarter. Geode Capital Management LLC grew its stake in Colgate-Palmolive by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 22,103,901 shares of the company’s stock worth $1,754,657,000 after buying an additional 304,426 shares during the last quarter. Morgan Stanley grew its stake in Colgate-Palmolive by 1.7% during the fourth quarter. Morgan Stanley now owns 19,246,217 shares of the company’s stock worth $1,520,836,000 after buying an additional 323,367 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in shares of Colgate-Palmolive by 8.1% during the second quarter. Bank of New York Mellon Corp now owns 13,532,417 shares of the company’s stock worth $1,240,652,000 after buying an additional 1,010,872 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Colgate-Palmolive in the fourth quarter valued at approximately $861,670,000. Institutional investors own 80.41% of the company’s stock.

Colgate-Palmolive Stock Performance CL stock opened at $91.02 on Monday. The business’s fifty day moving average is $91.89 and its 200-day moving average is $90.13. The company has a quick ratio of 0.67, a current ratio of 1.03 and a debt-to-equity ratio of 13.82. The company has a market cap of $72.56 billion, a P/E ratio of 36.12, a price-to-earnings-growth ratio of 4.26 and a beta of 0.33. Colgate-Palmolive Company has a twelve month low of $74.54 and a twelve month high of $99.33.

Colgate-Palmolive (NYSE:CL – Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The company reported $0.99 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.04. The business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.36 billion. Colgate-Palmolive had a return on equity of 464.63% and a net margin of 9.68%.The firm’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.92 earnings per share. Equities research analysts forecast that Colgate-Palmolive Company will post 3.86 EPS for the current year. Colgate-Palmolive Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, July 20th were issued a dividend of $0.53 per share. The ex-dividend date was Monday, July 20th. This represents a $2.12 dividend on an annualized basis and a yield of 2.3%. Colgate-Palmolive’s dividend payout ratio (DPR) is 84.13%.

Wall Street Analysts Forecast Growth Several research analysts have recently commented on the company. Jefferies Financial Group reissued a “hold” rating on shares of Colgate-Palmolive in a report on Monday, August 3rd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Colgate-Palmolive in a report on Friday, July 31st. Barclays lifted their price objective on Colgate-Palmolive from $80.00 to $87.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 21st. Morgan Stanley reissued an “overweight” rating and issued a $104.00 price objective on shares of Colgate-Palmolive in a research note on Monday, August 3rd. Finally, Piper Sandler increased their target price on Colgate-Palmolive from $92.00 to $96.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $99.00.

Get Our Latest Analysis on CL

Insider Transactions at Colgate-Palmolive In other news, Director John T. Cahill sold 4,170 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $93.37, for a total transaction of $389,352.90. Following the completion of the transaction, the director directly owned 28,373 shares in the company, valued at approximately $2,649,187.01. The trade was a 12.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Noel R. Wallace sold 161,021 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $91.92, for a total value of $14,801,050.32. Following the completion of the sale, the chief executive officer directly owned 362,231 shares of the company’s stock, valued at approximately $33,296,273.52. This trade represents a 30.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.43% of the stock is currently owned by company insiders.

(Free Report)

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.

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Key Takeaways CL's volumes are improving, margins are holding up and management raised its Base Business earnings outlook.Emerging-market organic sales rose 4.8%, while North America fell 3% as U.S. demand and competition weighed.CL trades at 22.5X forward earnings, above key benchmarks, while favorable estimate revisions add support. Colgate-Palmolive Company (CL - Free Report) enters the second half of 2026 with better operating momentum. Volumes are improving, margins have held up better than expected and management lifted its Base Business earnings outlook.

The restraint is valuation. CL still trades above its sub-industry, sector and the broader market, while weakness in North America leaves less room for execution misses.

Colgate's Growth Mix Is Getting HealthierSecond-quarter organic sales rose 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third straight quarter, giving Colgate a more balanced growth mix than one driven mainly by price.

Emerging markets added breadth, with organic sales up 4.8%. Latin America rose 5.3% and Asia Pacific increased 5.2%, while management expects the second half to be somewhat more volume-driven as innovation and brand penetration efforts scale.

CL's Margin Outlook Improves Despite Higher CostsGross profit margin expanded 140 basis points year over year to 61.5% in the second quarter. Revenue growth management, productivity, pricing and mix helped absorb higher investment, including a 15% increase in advertising.

Management now expects full-year gross profit margin to be roughly flat year over year, versus a prior expectation for a decline. That upgrade matters because raw-material and tariff costs are still expected to be higher in the second half than in the second quarter.

Colgate's North America Weakness Caps the UpsideNorth America remains the clearest operating drag. Second-quarter organic sales fell 3% and organic volume declined 3.9% as softer U.S. categories, retailer inventory reductions, heavier competition and some market-share loss pressured results.

Competitive intensity is meaningful. The Procter & Gamble Company (PG - Free Report) competes in oral care through brands including Crest and Oral-B, while The Clorox Company (CLX - Free Report) has a broad home-care portfolio. Colgate plans selective pricing and promotional actions, but persistent category softness could slow the volume recovery.

CL's Valuation Leaves Less Room for ErrorCL trades at 22.47X forward 12-month earnings, above the Zacks sub-industry's 18.38X, the sector's 17.2X and the S&P 500's 20.6X. That premium raises the hurdle for further upside if U.S. demand or cost pressures worsen.

Image Source: Zacks Investment Research

The stock is not at an extreme relative to its own history. Its current multiple sits below the five-year median of 23.5X, with the five-year range spanning 19.4X to 28.8X. The valuation therefore looks elevated versus external benchmarks but less stretched versus Colgate's historical norm.

Colgate's Earnings Revisions Add SupportThe Zacks Consensus Estimate for earnings in the current fiscal year has moved higher, with the estimate up 1.3% over four weeks and 1.1% over 12 weeks. Second-quarter Base Business earnings of 99 cents per share also beat the consensus mark of 95 cents by 4.2%.

Projected EPS growth for the current fiscal year is 4.3%. That keeps the valuation-growth trade-off in focus because estimate revisions are favorable, but the expected earnings growth rate remains modest relative to the stock's forward multiple.

CL's Mixed Style Scores Reinforce PatienceThe operating picture has improved, but the valuation premium and North American pressure argue for patience rather than treating recent progress as an unqualified buying signal. CL currently carries a Zacks Rank #3 (Hold), consistent with a balanced near-term stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CL has a VGM Score of B, a Growth Score of B and a Momentum Score of B, but a Value Score of D. The B grades are favorable within their respective styles, while the Value Score is a counterweight. Because the Zacks Style Scores complement the Zacks Rank, the mix shows favorable growth and momentum characteristics alongside weaker value characteristics.

B. Metzler seel. Sohn & Co. AG trimmed its stake in Colgate-Palmolive Company (NYSE:CL – Free Report) by 26.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 157,966 shares of the company’s stock after selling 56,921 shares during the quarter. B. Metzler seel. Sohn & Co. AG’s holdings in Colgate-Palmolive were worth $14,482,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Kemnay Advisory Services Inc. bought a new position in Colgate-Palmolive in the fourth quarter worth approximately $25,000. CBIZ Investment Advisory Services LLC increased its holdings in shares of Colgate-Palmolive by 86.7% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 323 shares of the company’s stock valued at $26,000 after acquiring an additional 150 shares in the last quarter. TD Capital Management LLC raised its position in shares of Colgate-Palmolive by 61.4% during the fourth quarter. TD Capital Management LLC now owns 326 shares of the company’s stock worth $26,000 after purchasing an additional 124 shares during the period. Triumph Capital Management raised its position in shares of Colgate-Palmolive by 62.9% during the fourth quarter. Triumph Capital Management now owns 329 shares of the company’s stock worth $26,000 after purchasing an additional 127 shares during the period. Finally, Jessup Wealth Management Inc bought a new position in shares of Colgate-Palmolive in the 4th quarter worth $26,000. 80.41% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth A number of brokerages have commented on CL. UBS Group boosted their price target on shares of Colgate-Palmolive from $106.00 to $109.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Citigroup boosted their target price on shares of Colgate-Palmolive from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Royal Bank Of Canada upped their target price on shares of Colgate-Palmolive from $102.00 to $104.00 and gave the stock an “outperform” rating in a report on Monday, August 3rd. Piper Sandler raised their price target on shares of Colgate-Palmolive from $92.00 to $96.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Finally, Wells Fargo & Company lifted their price target on Colgate-Palmolive from $92.00 to $95.00 and gave the company an “equal weight” rating in a research note on Wednesday, July 8th. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Colgate-Palmolive presently has a consensus rating of “Moderate Buy” and an average target price of $99.00.

Get Our Latest Stock Report on Colgate-Palmolive Colgate-Palmolive Stock Down 1.3% Shares of NYSE:CL opened at $89.68 on Friday. The company has a market capitalization of $71.49 billion, a PE ratio of 35.59, a price-to-earnings-growth ratio of 4.25 and a beta of 0.33. The company has a debt-to-equity ratio of 13.82, a current ratio of 1.03 and a quick ratio of 0.67. The business has a fifty day moving average price of $91.86 and a two-hundred day moving average price of $90.13. Colgate-Palmolive Company has a 1 year low of $74.54 and a 1 year high of $99.33.

Colgate-Palmolive (NYSE:CL – Get Free Report) last released its earnings results on Friday, July 31st. The company reported $0.99 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.04. The company had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.36 billion. Colgate-Palmolive had a return on equity of 464.63% and a net margin of 9.68%.The business’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.92 EPS. Analysts forecast that Colgate-Palmolive Company will post 3.86 earnings per share for the current year.

Colgate-Palmolive Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, July 20th were given a $0.53 dividend. The ex-dividend date of this dividend was Monday, July 20th. This represents a $2.12 annualized dividend and a yield of 2.4%. Colgate-Palmolive’s payout ratio is currently 84.13%.

Insider Transactions at Colgate-Palmolive In other news, CEO Noel R. Wallace sold 161,021 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $91.92, for a total transaction of $14,801,050.32. Following the completion of the sale, the chief executive officer owned 362,231 shares in the company, valued at $33,296,273.52. This trade represents a 30.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director John T. Cahill sold 4,170 shares of Colgate-Palmolive stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $93.37, for a total transaction of $389,352.90. Following the completion of the sale, the director directly owned 28,373 shares in the company, valued at $2,649,187.01. This trade represents a 12.81% decrease in their position. The SEC filing for this sale provides additional information. 0.43% of the stock is owned by insiders.

(Free Report)

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.

Featured Stories Five stocks we like better than Colgate-Palmolive 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding CL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Colgate-Palmolive Company (NYSE:CL – Free Report).

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Key Takeaways CL remains below its 50-day SMA, signaling weaker short-term momentum after a recent rebound.Colgate-Palmolive faces softer U.S. demand, retailer inventory cuts and heightened competition.CL posted 4.9% Q2 sales growth, while emerging markets and improved gross-margin execution offered support. Shares of Colgate-Palmolive Company (CL - Free Report) have witnessed some near-term pressure, with the stock slipping below its key 50-day simple moving average (SMA), signaling a loss of short-term technical momentum. On Monday, CL closed at $90.21, below its 50-day SMA of $91.56. Although the stock rebounded 1.4% in the next trading session to close at $91.46, it remained marginally below the updated 50-day SMA of $91.32.

A stock’s move below the 50-day SMA is generally viewed as a sign of weakening short-term momentum, as it indicates that recent buying interest is losing strength. For Colgate-Palmolive, the breach warrants attention, particularly after the stock failed to sustain its recent momentum.

SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach also provides a clearer perspective on a stock's long-term direction.

CL Stock Trades Below 50 Day SMAs
Image Source: Zacks Investment Research

CL has delivered a lackluster performance, with its shares declining 3.8% in the past six months compared with the Zacks Consumer Products – Staples industry’s 5% fall. However, the stock has outperformed the broader Zacks Consumer Staples sector, which fell 10.2%, while underperforming the S&P 500’s 11.8% gain over the same period.

CL’s Six-Month Price Performance
Image Source: Zacks Investment Research

At its current price of $91.46, CL stock trades 22.7% above its 52-week low of $74.55 and roughly 7.9% below its 52-week high of $99.33.

The recent technical weakness comes despite a solid second-quarter 2026 performance. Colgate-Palmolive reported net sales of $5.36 billion, up 4.9% year over year, while organic sales advanced 2.4%. Base Business earnings increased 8% to 99 cents per share. The company also delivered strong gross-margin performance and continued to increase advertising investments behind its brands.

Nevertheless, several near-term challenges appear to be keeping investors cautious.

Here's Why CL Stock Faces Near-Term PressureThe biggest concern remains the North American business. Management expressed disappointment with the second-quarter performance in the region amid softer category demand, heightened competitive activity and inventory reductions by major retailers. The company also identified selective pricing gaps versus competitors and plans to address them while stepping up advertising and premium innovation during the second half.

North America net sales and organic sales declined 3% in the second quarter, with a 3.9% volume decline more than offsetting a 0.9% increase in pricing. This weakness contrasts with stronger results in several international markets and remains an important hurdle for Colgate as it attempts to improve its U.S. trajectory.

Consumer uncertainty is another concern. Management highlighted significant month-to-month volatility in category trends, noting that elevated gasoline prices and weaker consumer confidence have made shoppers more cautious. Although U.S. category trends improved after a particularly weak May, they remained below historical levels.

Cost pressures could also intensify in the second half. Colgate expects raw-material costs and tariffs to be higher in the back half than in the second quarter. Even so, strong revenue growth management, pricing, productivity and favorable mix allowed the company to raise its full-year gross-margin outlook to roughly flat from its prior expectation for a decline.

Hill’s Pet Nutrition also faces a softer category backdrop. Excluding the private-label exit, Hill’s delivered roughly 4% organic growth, but the exit created an approximately 200-basis-point drag on volume. Management believes the pet category may be near a bottom, though inflation could continue to pressure demand.

Still, Colgate-Palmolive's international operations provide an important cushion. Emerging markets led second-quarter growth, with strength in India, Brazil, Mexico and China, while Europe continued to benefit from innovation, premiumization and market-share gains.

Here’s How Estimates Are Shaping for CLThe Zacks Consensus Estimate for Colgate-Palmolive’s earnings per share (EPS) for the current and upcoming fiscal years has been revised upward over the past 30 days. For fiscal 2026 and 2027, EPS estimates have moved upward by 1.3% and 0.5% to $3.86 and $4.07, respectively.

Image Source: Zacks Investment Research

CL’s Valuation PictureValuation remains another factor investors should consider. CL currently trades at a forward 12-month P/E ratio of about 22.92X, above the Zacks Consumer Products - Staples industry average of 18.12X. The premium valuation suggests that investors are already assigning considerable value to Colgate-Palmolive’s strong brands, global footprint, margin execution and long-term growth prospects.

Image Source: Zacks Investment Research

The premium becomes more important in the context of the stock’s recent technical weakness. While Colgate-Palmolive continues to deliver healthy profitability and international growth, persistent U.S. pressure, elevated promotional competition and rising input costs could limit near-term upside if operating trends fail to improve sufficiently.

Should You Buy CL Stock After the SMA Breach?Colgate-Palmolive has several fundamental strengths, including its dominant global oral-care franchise, emerging-market momentum, improving gross-margin execution, strong cash generation and continued investments in premium innovation and brand support.

However, the drop below the 50-day SMA points to weakening short-term momentum. U.S. category softness, retailer inventory reductions, heightened competitive activity and rising raw-material and tariff costs could continue to create volatility. Meanwhile, CL's premium valuation leaves less room for execution setbacks.

Given the mixed technical picture and balanced fundamental outlook, investors may prefer to wait for a more decisive move back above the 50-day SMA before becoming more constructive on the stock. Existing investors may continue to hold their positions, particularly while CL remains above its 200-day moving average.

Colgate-Palmolive currently carries a Zacks Rank #3 (Hold). 

Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. At present, Darling Ingredients sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago figures. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The J. M. Smucker Company (SJM - Free Report) , which manufactures and markets branded food and beverage products, carries a Zacks Rank #2 (Buy) at present. SJM delivered a trailing four-quarter earnings surprise of 1.5%, on average.

The Zacks Consensus Estimate for J. M. Smucker’s current fiscal-year earnings indicates growth of 8.9% from the year-ago figures.

US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank of 2. USFD delivered a trailing four-quarter earnings surprise of 1.5%, on average.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.3% and 16.3%, respectively, from the year-ago figures.

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Stock to Watch: Colgate-Palmolive (CL - Free Report) Colgate-Palmolive Company’s business strategy closely defines efforts to increase its leadership in key product categories through innovation in core businesses, tracking adjacent categories growth and expansion into new markets and channels. Due to the shift of consumer preference to organic and natural ingredients, the company is expanding its Naturals range, including Naturals toothpaste. It is ranked as a leading consumer goods company with a global household penetration.

CL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. CL has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.6% for the current fiscal year.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $3.86 per share. CL also boasts an average earnings surprise of +3.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CL should be on investors' short list.

John T. Cahill, Director of Colgate-Palmolive Company (CL +0.29%), reported a sale of 4,170 shares of Common Stock on Aug. 6, 2026, as disclosed in an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$389,353Shares sold4,170Post-transaction shares (directly held)28,373Post-transaction shares (indirectly held)36,357Post-transaction value$6.02 millionTransaction value based on SEC Form 4 weighted average sale price ($93.37); post-transaction value based on Aug. 6, 2026, market close ($93.00).

Key questionsWhat was the structural context of this disposal?
The transaction was an exercise and sale of stock options awarded in May 2019 that became exercisable in annual installments, representing a routine realization of long-term incentive compensation.How is the insider's remaining equity structured?
Following the sale of 4,170 shares, the director's equity is split between 28,373 shares held directly and 36,357 shares held indirectly by a trust, maintaining a multi-layered ownership structure.What does the timing of the sale indicate regarding valuation?
The sale was executed at $93.37 per share, slightly above the market close of $93.00 on the transaction date, and occurred as the stock had produced a 10% total return over the preceding 12 months as of Aug. 6, 2026.Company OverviewMetricValueShare Price (as of market close 2026-08-06)$93.00Market Capitalization$74.6 billionRevenue (TTM)$21.0 billionNet Income (TTM)$2.0 billionCompany SnapshotColgate-Palmolive operates a diversified portfolio of consumer goods spanning oral hygiene products (toothpastes, toothbrushes, mouthwashes), personal care items (soaps, shower gels, shampoos, conditioners), and pet nutrition offerings, generating revenue across its Oral, Personal, and Home Care divisions and Pet Nutrition segment.The company generates revenue through the production, marketing, and global distribution of branded consumer products to retail channels, leveraging established brand recognition and extensive distribution networks to maintain market share across multiple consumer categories.Colgate-Palmolive serves mass-market consumers globally, with primary customers including retail chains, supermarkets, and e-commerce platforms that distribute its products to households and individual consumers across developed and emerging markets.Colgate-Palmolive is a multinational consumer goods manufacturer with a market capitalization of $74.6 billion and TTM revenue of $21.0 billion, positioning it as a significant player in the household and personal products sector. The company maintains competitive advantages through its portfolio of globally recognized brands, established distribution infrastructure, and diversified product offerings across oral care, personal care, and pet nutrition categories. With 33,600 employees and operations spanning multiple geographic regions, Colgate-Palmolive leverages scale and brand equity to sustain market leadership in the consumer defensive sector.

What this transaction means for investorsSimply put, investors shouldn’t fret over this sale. The transaction by Director Cahill was part of a prearranged option exercise and sale that doesn’t indicate any market timing or judgment regarding Colgate Palmolive stock.

As for the blue chip dividend-paying business itself, Colgate-Palmolive remains one of the most recognizable steady-Eddie investments out there. Currently trading at 19 times free cash flow, CL stock is slightly cheaper than normal, but is more of an income-generating investment at this point in its business life cycle. Paying a 2.3% dividend yield and having raised its payments for 62 straight years, Colgate’s returns to shareholders and defensive consumer-goods positioning make it a perfect cornerstone for investors focused on safety.

That said, over the last five years, Colgate’s organic sales, free cash flow, and dividend have only increased by 6%, 5%, and 2% annually, so investors shouldn’t expect market-smashing returns. In its last quarter, sales and EPS both rose by 5%, while it maintained its No. 1 and No. 2 positions across its myriad products and verticals. Ultimately, Colgate Palmolive is a top-tier holding for stability, but one I’m not particularly interested in as I’d rather have steadier growth options.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool has a disclosure policy.

Dividend stock investors have an excellent choice with this company.

*Stock prices used were the afternoon prices of July 28, 2026. The video was published on July 30, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Key Takeaways CL's Q2 earnings rose 8% as organic sales growth and productivity supported profitability.Latin America led growth, while North America declined and Asia Pacific delivered solid organic gains.CL raised its 2026 earnings growth outlook as gross margin expectations improved despite higher spending. Colgate-Palmolive Company (CL - Free Report) posted second-quarter 2026 results, wherein earnings and sales beat the Zacks Consensus Estimate and grew year over year. Results benefited from higher organic sales and gains from strategic efforts. On a Base Business basis (non-GAAP basis), earnings were 99 cents per share, up 8% year over year and beating the Zacks Consensus Estimate of 95 cents by 4.2%.

Net sales rose 4.9% to $5.36 billion and came above the consensus mark of $5.35 billion. Organic sales grew 2.4%, supported by a 0.8% increase in organic volume and 1.6% pricing growth. A 2.4% favorable foreign-exchange impact also aided sales. Our model had anticipated organic sales growth of 2.7% for the reported quarter.

The company maintained a 41.3% year-to-date share of the global toothpaste market. It also held a 32.7% share of the worldwide manual toothbrush market. These leadership positions support management's strategy of investing in innovation and brand-building initiatives. Colgate expects strong investment levels to continue through the remainder of 2026.

Hill's Pet Nutrition net sales rose 3.4%, while organic sales increased 2.1%. Pricing improved 3.9%, but organic volume declined 1.8%, partly reflecting the company's exit from private-label pet food.

This Zacks Rank #3 (Hold) company’s shares have gained 4.9% in the past three months compared with the industry’s 2.1% growth.

CL's Margin Gains Offset Cost PressuresGAAP and Base Business gross profit margin expanded 140 basis points year over year to 61.5%. The improvement strengthened profitability despite a difficult operating environment and continued spending behind brands.

Base Business operating profit increased 5% to $1.1 billion. The adjusted operating margin edged up 10 basis points to 21.4%, showing that stronger gross margin performance and productivity actions helped absorb higher investments.

Base Business selling, general and administrative expenses were $2.1 billion, while the adjusted expense rate increased 120 basis points to 39.6% of sales. We had expected selling, general and administrative expenses to increase 30 basis points to 38.7% of sales.

Advertising spending climbed 15% to $777 million from $678 million a year ago. Management said elevated investment will continue in the back half as the company focuses on premium, science-led innovation and omnichannel demand generation.

CL's Regional Sales Picture Stays MixedNorth America net sales fell 3% and organic sales also declined 3%, reflecting a 3.9% drop in volume that more than offset 0.9% pricing growth. The region accounted for 17% of total company sales.

Latin America remained the strongest growth contributor, with net sales up 13.7% and organic sales rising 5.3%. Volume grew 2.6%, pricing increased 2.8% and foreign exchange contributed 8.4%.

Europe, Middle East & Africa net sales increased 3.5%, while organic sales rose 2%. A 3.2% volume gain more than offset a 1.2% pricing decline, and currency added 1.6%.

Asia Pacific net sales advanced 4.9% and organic sales grew 5.2%, driven by 4.1% volume growth and 1.1% pricing. Foreign exchange reduced the region's reported sales growth by 0.3%.

Our model had expected sales to decline 0.9% year over year in North America, rise 7% in Latin America, jump 6.1% in Europe, Middle East & Africa and rise 7% in Asia Pacific.

CL Strengthens Cash Flow and LiquidityNet cash provided by operations reached $1.7 billion in the first six months of 2026, up from $1.5 billion a year ago. Free cash flow before dividends increased to $1.5 billion from $1.3 billion.

CL ended June with $1.4 billion in cash and cash equivalents and total debt of $7.9 billion. During the first half, the company paid $879 million in dividends and purchased $597 million of treasury shares.

Colgate Updates 2026 Profitability OutlookColgate maintained its 2026 net sales growth outlook of 2-6% and organic sales growth guidance of 1-4%. Foreign exchange is still expected to provide a low-single-digit positive impact at current spot rates.

Management now expects both GAAP and Base Business gross profit margin to be roughly flat year over year, improving from its prior expectation of a decline. It also raised its Base Business earnings growth forecast to mid-single digits from low- to mid-single-digit growth, while retaining its view for double-digit GAAP earnings growth.

Stocks to Consider in the Consumer Staples Space United Natural Foods (UNFI - Free Report) , which is the leading distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.

Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank #2 (Buy). MED missed the average earnings surprise by a sharp margin in the trailing four quarters.

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number.

Freshpet, Inc. (FRPT - Free Report) , which manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.5% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 49.4%, on average.

3 Dividend Kings With Income, Stability, and a Possible CatalystColgate-Palmolive NYSE: CL said its second-quarter 2026 results reflected broad-based organic sales growth, gross-margin expansion and higher advertising spending, while executives outlined steps to improve performance in North America amid softer category trends and elevated competition.

Chairman, President and Chief Executive Officer Noel Wallace said organic sales grew in four of the company’s five divisions and in three of its four categories. Growth was led by emerging markets, including India, Brazil, Mexico and China, while Europe and the Hill’s pet nutrition business also contributed.

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3 Up-and-Coming Stocks That Could Be the Next NVIDIA“We’re pleased to have delivered another quarter of strong top and bottom-line growth, particularly in the context of continued global volatility,” Wallace said. The company’s free cash flow increased 18% through the second quarter, and it returned $1.4 billion to shareholders, according to Wallace.

The company also said John Faucher, executive vice president of M&A and special projects, will retire at the end of September. Wallace said the call was Faucher’s 40th quarterly earnings call with Colgate-Palmolive.

Margins Supported by Pricing, Mix and Productivity 3 Sectors That Look Most Vulnerable Ahead of May 15Colgate-Palmolive reported gross-margin expansion of 100 basis points in the quarter, including a modest benefit from tariff refunds. Wallace said most of the improvement came from the company’s core operations, including pricing, revenue growth management, productivity initiatives and product mix.

Chief Financial Officer Stan Sutula said material costs were slightly below the company’s expectations during the quarter, as higher raw-material costs were partially offset by tariff refunds. He said the company does not expect meaningful additional refunds.

Management said it now expects gross margin to be roughly flat for the full year, an improvement from its prior expectation for a decline. Sutula cautioned that raw-material costs and tariffs are expected to be higher in the second half than in the second quarter, although comparisons will be easier year over year. He said oil prices around $90 could make fourth-quarter costs somewhat lower than the company had previously assumed.

Wallace said the company has been incorporating expected cost increases into its profit-and-loss planning and is using pricing, revenue growth management and promotional artificial-intelligence tools to protect profitability. The company increased advertising by double digits during the quarter and plans to maintain elevated investment behind its brands.

“We believe our efforts in revenue growth management, promo AI, and funding the growth give us the ability to invest in advertising to build our brands while driving profit and EPS growth,” Wallace said.

North America Improvement Plan Wallace said the company was not satisfied with its U.S. performance. He attributed part of the weakness to category softness in May, heightened competition and inventory reductions by certain retailers. While category conditions improved in June and remained steadier in July, Wallace said they were still below historical levels.

Management said retailer inventory reductions caused shipments to trail consumption in North America, and Wallace said the company has not assumed that retailers will rebuild inventories during the second half.

Colgate-Palmolive plans to increase distribution and support for recent launches, including Optic White Pro Series with ActivShine technology and Fabuloso products in new formats. The company also plans to take “surgical” actions in specific categories and retail channels where it identified price and promotional gaps versus competitors.

Increase brand support across core U.S. businesses. Expand premium innovation in 2026 and 2027. Address selected price and promotion gaps without broadly escalating promotional activity. Focus on improving market share and delivering sequential improvement in the second half. Wallace said the company is particularly focused on premium opportunities, where it believes it is under-indexed in North America. He pointed to the company’s experience in Asia and Europe, where stronger innovation, premium offerings, go-to-market changes and online expansion have supported improvement.

Hill’s Gains Share in a Soft Pet Market Hill’s continued to outperform the broader pet-food category, according to Wallace. Excluding discontinued private-label business, Hill’s organic sales rose 4%, compared with a category that Wallace characterized as roughly flat, particularly in the U.S.

Private-label discontinuations reduced Hill’s volume by 200 basis points. Excluding those discontinuations, volume was approximately flat during the quarter, while the therapeutic business delivered growth in both volume and pricing, supporting mix and gross-margin improvement.

Wallace said Hill’s gained traction in cat food, wet food and small-pet offerings, while Science Diet dog food was weaker as consumers shifted toward smaller pets and ownership of larger pets declined. International Hill’s sales rose at a solid mid-single-digit rate, he said.

The company is also rolling out fresh pet food in the U.S. following its Prime acquisition. Wallace described the rollout as deliberate and said the company’s initial objective is to establish the brand’s scientific credentials and professional support rather than pursue significant early volume.

The offering includes three single-protein diets, with the company emphasizing their intended benefits for digestion, coat condition and overall pet health. Distribution will be phased through professional, pet-specialty and neighborhood veterinary channels rather than launched simultaneously across all retailers.

Emerging Markets, China and AI Initiatives Latin America delivered approximately 5% organic growth, with pricing up 2.8% and volume up 2.6%, Wallace said. Brazil grew at a high-single-digit rate and Mexico grew at a mid-single-digit rate. Management said Colgate Total market shares have been rebuilding, particularly in Brazil, following prior reformulation-related issues.

In India, the company reported double-digit growth, supported by both indirect trade and modern trade. Wallace said the company is pursuing premiumization while also maintaining price-pack architectures designed to attract consumers entering its categories.

Greater China rose at a mid-single-digit rate, while the Colgate China business delivered mid-single-digit growth and Hawley & Hazel, which includes the Darlie brand, posted low-single-digit organic growth. Wallace said China remains a challenging market due to declining brick-and-mortar sales, rapid e-commerce shifts and aggressive competition, but he highlighted the market’s role in developing digital talent and social-first innovation.

Wallace also said Colgate-Palmolive is scaling AI across pricing, productivity, innovation, marketing and data analytics. The company has trained much of its workforce on AI tools, including about 70% of vice presidents in advanced AI training, according to Wallace. He said the company is moving from AI pilots toward broader implementation, including promotional optimization, content creation and more automated internal processes.

About Colgate-Palmolive (NYSE:CL)Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company's core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Colgate-Palmolive Company reported stable overall Q2 results. Organic revenues grew moderately, and margins stayed good. Growth varies by market. CL's advertising investments are yielding results in Latin America and Asia Pacific, but competitive pressure is weakening results in North America. I estimate CL stock to have a fair value of $92.4.

Colgate-Palmolive (CL - Free Report) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.21%. A quarter ago, it was expected that this consumer products maker would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Colgate-Palmolive, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $5.36 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.20%. This compares to year-ago revenues of $5.11 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Colgate-Palmolive shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Colgate-Palmolive?While Colgate-Palmolive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Colgate-Palmolive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.91 on $5.35 billion in revenues for the coming quarter and $3.81 on $21.39 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, BBB Foods (TBBB - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12.

This discount retailer is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -38.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

BBB Foods' revenues are expected to be $1.42 billion, up 47.5% from the year-ago quarter.

Colgate-Palmolive recorded higher sales in the second quarter, despite a choppy consumer environment.

Vzhledem k tomu, že technologický sektor čelí zvýšené volatilitě a investoři stále častěji zpochybňují vysoké valuace některých AI titulů, doporučují stratégové Morgan Stanley zaměřit se na kvalitní společnosti s robustním cash flow, silnými rozvahami a stabilní ziskovostí. Do konce roku nadále očekává růst amerických akcií, byť s odlišnými lídry, než jací dominovali dosavadní AI rally.

V úterý posílil index Dow Jones Industrial Average, zatímco Nasdaq Composite oslabil. ETF Technology Select Sector SPDR Fund (XLK), které sleduje technologický sektor, kleslo na nejnižší úroveň od 7. května. Naopak rostly akcie ze zdravotnictví a finančního sektoru. Přesun investorů ke kvalitním společnostem představuje „klasickou přechodovou fázi uprostřed hospodářského cyklu, kdy ekonomika dozrává,“ uvedl hlavní americký akciový stratég Morgan Stanley Mike Wilson.

Krátkodobě nelze podle Wilsona vyloučit konsolidaci nebo i další pokles směrem k 7 000 bodům na indexu S&P 500, pokud by konflikt na Blízkém východě dále eskaloval nebo by Fed dnes nečekaně zvýšil sazby. Rotace směrem ke kvalitním titulům by však měla ve výsledku podpořit odolnost indexu i širší účast jednotlivých sektorů na růstu, byť s jinými lídry než doposud, domnívá se Wilson s tím, že hranice 7 000 bodů by měla být „ubráněna“ a do konce roku by mohl index vzrůst až k 8 000 bodům, cituje CNBC.

V současném prostředí Morgan Stanley preferuje společnosti s vysokým výnosem volného cash flow, nízkou kolísavostí zisku na akcii (EPS), silnými rozvahami a vysokými maržemi. Wilson a jeho tým proto vybrali kvalitní společnosti, na které má banka doporučení Overweight, u nichž mnohé z těchto firem vyplácejí dividendy. CNBC zveřejnila dividendové tituly, které tímto sítem prošly:

Ticker  Akcie Sektor Letošní výnos Dividendový výnos KO Coca-Cola Spotřeba 25,66% 2,41% CL Colgate-Palmolive Spotřeba 18,51% 2,26% SLB SLB Energetika 30,98% 2,35% TRGP Targa Resources Energetika 42,07% 1,91% LNC Lincoln National Finance -4,06% 4,21% GILD Gilead Sciences Zdravotnictví 9,92% 2,43% NOC Northrop Grumman Průmysl -3,57% 1,80% ROL Rollins Průmysl -35,20% 1,88% Coca Cola nabízí dividendový výnos 2,41 %. Včera vzrostly její akcie o více než 4 % po zveřejnění výsledků hospodaření za druhý kvartál, kdy tento nápojový gigant překonal očekávání trhu jak na úrovni tržeb, tak zisku a zároveň zvýšil celoroční výhled. Morgan Stanley na ni minulý měsíc potvrdila doporučení Overweight.

„Coca Cola zůstává naším nejatraktivnějším tipem. Nadprůměrný dlouhodobý růst organických tržeb podporuje několik pozitivních krátkodobých faktorů, včetně zrychlujícího růstu značky Fairlife v USA díky navyšování výrobních kapacit. Zároveň si Coca Cola udržuje silnou cenotvorbu ve srovnání s ostatními výrobci spotřebního zboží. Domníváme se, že její konkurenční výhoda vůči klíčovým rivalům, jako jsou PepsiCo a Keurig Dr Pepper, se dále zvyšuje,“ uvedl analytik Dara Mohsenian v komentáři z 10. června. Akcie Coca Coly od začátku roku vzrostly o 26 %.

Na seznam kvalitních dividendových titulů Morgan Stanley se dostala také společnost Colgate-Palmolive, která nabízí dividendový výnos 2,26 %. Výrobce produktů osobní hygieny a péče o domácnost zveřejní výsledky za druhé čtvrtletí v pátek. Morgan Stanley u něj v květnu potvrdila doporučení Overweight a podle analytika Dary Mohseniana se dlouhodobý výhled firmy zlepšuje. „I po solidním růstu akcií od začátku roku nadále vidíme prostor pro růst valuace,“ uvedl Mohsenian ve zprávě klientům. Akcie Colgate Palmolive od začátku roku 2026 vzrostly přibližně o 18 %.

Společnost SLB, dříve Schlumberger, je poskytovatelem služeb pro ropný a plynárenský průmysl a letos si připsala růst o 31 %. Firma navíc nedávno zveřejnila výsledky za druhé čtvrtletí, které překonaly očekávání trhu na úrovni tržeb i zisku. Podle společnosti vyšší aktivita těžby na moři více než vykompenzovala narušení způsobená situací na Blízkém východě.

„Bez efektů Blízkého východu rostly tržby mezikvartálně ve všech divizích. Podpořila je vyšší aktivita v offshore projektech, oživení těžby z nekonvenčních ložisek v USA a silná poptávka po řešeních pro těžbu a zvyšování výtěžnosti ložisek,“ uvedl CEO Olivier Le Peuch. SLB nabízí dividendový výnos 2,35 %.

Targa Resources je jedna z největších severoamerických midstream energetických společností, která zajišťuje těžbu, zpracování, přepravu a skladování ropy a zemního plynu a měla by těžit z nárůstu těžby v Permské pánvi. Podle dat Bloombergu u ní 20 analytiků drží doporučení „buy“, 4 „hold“ s průměrnou cílovou cenou 289,40 USD/akcie, která naznačuje potenciální zhodnocení o 10,6 %. Letos si připsala již přes 40 % a dividendový výnos u ní činí 1,9 %.

Lincoln National je finanční společnost, která nabízí dividendový výnos 4,2 %. Bloomberg u ní monitoruje 6 nákupních doporučení, 6 doporučení držet a 2 prodejní doporučení. Cílová cena 44,31 USD představuje potenciální výnos 3,5 %, přičemž za letošní rok odepsala 4 %. Výsledky bude firma reportovat zítra a trh počítá s poklesem upraveného zisku na akcii asi o 15 %, ale se zdravým momentem u výnosů a snižováním nákladů.

Mezi další kvalitní dividendové tituly zařadila Morgan Stanley také Gilead Sciences, která zveřejní své nejnovější výsledky příští týden. Morgan Stanley ve zprávě z počátku měsíce uvedl, že letos očekává tržby z preventivní HIV injekce Yeztugo od společnosti Gilead Sciences 1,1 miliardy dolarů, tj. nad tržním konsensem 1,05 miliardy dolarů i oficiálním výhledem Gileadu, který počítá s 1 miliardou dolarů. Akcie Gilead Sciences, která nabízí dividendový výnos 2,43 %, letos vzrostly téměř o 10 %.

Northrop Grumman, jeden z největších světových obranných a letecko-kosmických koncernů, nabízí dividendový výnos 1,80 %. V průzkumu Bloombergu u něj má 14 analytiků doporučení koupit a 9 držet. Průměrná cílová cena 650,5 USD nabízí 18,4% možný výnos a za letošní rok akcie firmy klesly o necelá 4 %. Trh u firmy očekává růst tržeb o vysoká jednociferná čísla díky rekordním nevyřízeným objednávkám za 105 miliard dolarů.

Rollins, přední světová firma v oblasti hubení škůdců, nabízí dividendový výnos 1,9 % a od začátku roku tato akcie odepsala více než třetinu své hodnoty. Bloomberg u ní monitoruje 8 doporučení koupit, 8 držet a 3 prodat. Průměrná cílová cena 43,56 USD nabízí možnost 11,7% zisku. UBS nicméně upozorňuje, že tržby za 2Q byly slabší, než očekával trh, i přes snížené odhady a že může ještě nějakou dobu trvat, než se plně obnoví organický růst.

Colgate-Palmolive (CL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis consumer products maker is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +3.3%.

Revenues are expected to be $5.35 billion, up 4.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.04% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Colgate-Palmolive?For Colgate-Palmolive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.78%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Colgate-Palmolive will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Colgate-Palmolive would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Colgate-Palmolive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Consumer Products - Staples industry, Procter & Gamble (PG - Free Report) , is soon expected to post earnings of $1.41 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -4.7%. This quarter's revenue is expected to be $21.36 billion, up 2.3% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for P&G has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.23%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

NEW YORK--(BUSINESS WIRE)--Colgate-Palmolive Company (NYSE:CL) will provide a live webcast of its 2026 second quarter earnings conference call on Friday, July 31, 2026, at 8:30 a.m. ET. The call will be hosted by Chairman, President and CEO, Noel Wallace, Chief Financial Officer, Stan Sutula, Executive Vice President, Investor Relations, Claire Ross, and Executive Vice President, M&A and Special Projects, John Faucher. Investors may access the earnings press release, prepared materials and.

As of market close on July 3, the S&P 500 (^GSPC +0.72%) and the Nasdaq-100 are up 9.3% and 16.2%, respectively, year to date (YTD). This is well ahead of their historical average annual gains. The tech sector, especially semiconductor stocks, has been the driver of broader market returns. But that doesn't mean all value stocks are underperforming the major indexes.

Colgate-Palmolive (CL 1.93%) is up 20.4% YTD. And it's also an ultra-reliable dividend stock that has paid uninterrupted dividends since 1895 and has increased its payout for 63 consecutive years. That streak earns Colgate-Palmolive a spot on the list of Dividend Kings, which are companies that have paid and increased their dividends for at least 50 consecutive years.

Here's why Colgate-Palmolive remains a top buy now even after its recent run-up.

Image source: Getty Images.

Colgate-Palmolive is at the top of its game Colgate-Palmolive has been a standout in the household and personal products industry. The company is guiding for 2026 net sales growth of 2% to 6% and organic sales growth of 1% to 4% at a time when many of its peers are experiencing sales declines. And even with margins under pressure, Colgate-Palmolive remains one of the most profitable companies in its industry. By comparison, Unilever, Kenvue, Church & Dwight, Clorox, Kimberly-Clark, and Estee Lauder all have operating margins under 20%.

CL Revenue (TTM) data by YCharts

The industry has been dealing with inflationary pressures and consumer resistance to price increases. But Colgate-Palmolive has done a masterful job of navigating these challenges through its elite brand portfolio, highly efficient supply chain and operations, and geographic diversification.

In addition to its flagship Colgate and Palmolive brands, the company owns Softsoap, Irish Spring, Tom's of Maine, and Speed Stick, among others. One of Colgate-Palmolive's top brands, Hill's Pet Nutrition, made up 23% of total 2025 sales.

Without factoring in Hill's, Europe, Middle East, and Africa (EMEA), Latin America, and Asia Pacific sales are more than triple those of North America, which has helped make Colgate-Palmolive resistant to U.S.-specific inflationary pressures. In the first quarter of 2026, North America was the only region that reported declining net and organic sales, while Latin America and EMEA posted double-digit growth and total company net sales rose 8.4% year over year.

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A dividend you can count on Colgate-Palmolive is far from cheap -- trading at 25 times forward earnings -- because the stock price has been rising faster than the company's earnings growth. But Colgate-Palmolive deserves its premium valuation because its results are solid despite a difficult operating environment. This resilience is particularly appealing to risk-averse folks seeking a stable passive income stream to help supplement retirement income. If inflationary pressures ease and consumer spending improves, a rising tide will lift the broader household and personal products industry. But Colgate-Palmolive isn't dependent on those factors to drive sales growth.

Colgate-Palmolive yields 2.2%, which is good but not quite high-yield territory. Many of its peers offer higher yields because they distribute the vast majority of their cash flow to shareholders through dividends, whereas Colgate-Palmolive's dividend is highly affordable. Its trailing-12-month free cash flow per share is at an all-time high of $4.66, well over double its $2.06 per-share annualized dividend.

So while Colgate-Palmolive could easily afford to pay a higher dividend, the company prefers a balanced approach of using cash to reinvest in the business, paying a steadily growing (and manageable) dividend, and buying back stock. Colgate-Palmolive has reduced its share count by 10% over the last decade, which has helped make the stock a better value.

Investing in a market leader Colgate-Palmolive's geographic diversification and portfolio of leading brands across pet nutrition and oral, personal, and home care make it highly recession resistant. The company continues to deliver solid growth through volume and price increases, while many of its peers face a difficult trade-off: either cutting prices to drive volume or keeping prices high at the expense of lower sales volumes.

All told, Colgate-Palmolive stands out as one of the most reliable dividend-paying stocks on the market. It's a top buy for the second half of the year for investors who don't mind paying a premium price for a quality company.

If you're an investor looking for dividend consistency, a yield over 2%, and stock appreciation of 16% year to date, you might be surprised that consumer staples veteran Colgate-Palmolive Company (CL +2.56%) fits the bill.

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Yes, the maker of cleaning supplies, shower soap, and even pet food has had an excellent year in the market. The company has also paid an uninterrupted dividend since 1895 and increased that dividend for 64 straight years. It is truly one of the most remarkable Dividend Kings available. A Dividend King is a company that has raised its dividend for at least 50 consecutive years.

Colgate recently increased its quarterly payout to $0.53 per share. The dividend is funded by the company's free cash flow of about $3.6 billion. Colgate is also experiencing strong growth for a company of its size. In the first quarter of 2026, net sales increased 8.4%, and the company maintained its full-year 2026 guidance.

Image source: Getty Images.

The biggest challenge for Colgate is the ongoing battle with inflationary pressures on materials. This was evident in the first-quarter results, as earnings per share and gross profit margin decreased. Fortunately, Colgate has very strong pricing power and global brand recognition. The company has also invested heavily in technology to drive innovation and improve efficiency.

For long-term income-focused investors, Colgate is a defensive hybrid offering both a solid yield and growth. The stock's current forward P/E ratio is about 24 and is also trading at about three times company sales, which could be perceived as slightly overvalued. Still, for income investors who plan to buy and hold, Colgate-Palmolive is an attractive investment that shouldn't be overlooked.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool has a disclosure policy.

CL stock's strength reflects solid momentum, but inflation, North America softness and a premium valuation could keep new buyers waiting.

Key Takeaways CL is using pricing actions and productivity initiatives to offset tariffs and cost pressures.Colgate is driving growth through premium innovation, including launches and brand relaunches.CL is investing in digital, analytics and AI to enhance innovation and optimize marketing execution. Colgate-Palmolive Company (CL - Free Report) is effectively leveraging its pricing power to support growth and mitigate external cost pressures. The company’s productivity program centers on cost savings and efficiency initiatives designed to strengthen its operational foundation. CL’s pricing strategy includes competitive pricing, value-based tactics and price segmentation to address diverse consumer needs while optimizing value.

Colgate’s strong brand equity continues to remain a major competitive advantage, enabling it to maintain positive pricing momentum and resilient volume performance despite a sluggish global consumption environment and significant inflationary pressures. Management emphasized that the strength of its global brands allowed the company to deliver both pricing and volume growth across most categories and divisions, particularly in emerging markets.

Sustained investments in advertising, omnichannel demand generation, digital capabilities and science-based innovation continue to strengthen consumer trust and brand loyalty, supporting Colgate’s ability to offset rising raw material, logistics and tariff-related costs through pricing and premium product innovation. The company is benefiting from key pricing actions, coupled with its funding-the-growth program and other productivity moves, aimed at driving efficiency and expanding margins.

Colgate continues to prioritize innovation as a key driver of growth across categories, geographies and price tiers. Management highlighted that premium innovation is fueling momentum, with launches such as Colgate Miracle Repair serum, EltaMD UV Skin Recovery, and relaunches of Colgate Total, Sanex, Protex, Suavitel, and Hill’s therapeutic lines. Such initiatives are helping strengthen brand health and expand household penetration by bringing consumer-perceived value at every price point.

Beyond Oral Care, Colgate’s skincare brands, including EltaMD and PCA Skin, remain growth engines, supported by consumer trade-ups to premium offerings. The company is also accelerating investment in digital, data, analytics and AI to sharpen its innovation model and optimize marketing execution. Such efforts are likely to continue driving sustained growth and profitability.

CL’s Price Performance, Valuation and EstimatesColgate’s shares have 16.6% in the past six months compared with the industry’s 1.4% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 23.16X compared with the industry’s average of 18.27X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CL’s 2026 and 2027 EPS indicates year-over-year growth of 3.3% and 6%, respectively. The company’s EPS estimate for 2026 has decreased a penny in the past 30 days but the same for 2027 has risen a penny.
Image Source: Zacks Investment Research

Colgate currently carries a Zacks Rank #3 (Hold).

Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chefs' Warehouse current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.

Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.

On June 24, 2026, we present a DCF analysis for Colgate-Palmolive Co (CL), a company that has shown a year-to-date price increase of 17.1% and a modest 5.7% inc

Consumer confidence is softening into the back half of spring, and the rotation out of growth and into recession-resistant cash flow is picking up speed. For investors looking to add ballast before the summer, three blue-chip staples stand out: Each delivered a top-and-bottom-line beat in its most recent quarter, each carries a multi-decade dividend track record and each is rated a Buy by our model with double-digit (or near-double-digit) upside to base-case targets.

Here are three defensive compounders worth a look in June.

This infographic details three recession-resistant consumer staples stocks—Coca-Cola, Procter & Gamble, and Colgate-Palmolive—highlighting their recent earnings, dividend growth, and summer investment angles, with data current as of June 10, 2026. Coca-Cola (NYSE: KO) Coca-Cola (NYSE:KO | KO Price Prediction) is the cleanest summer trade in the group. Beverages skew warm-weather, and the company is heading into peak season with serious momentum. Q1 2026 (filed April 28) delivered EPS of 86 cents against an 81-cent estimate and revenue of $12.472 billion, up 12% year over year. Organic revenue growth ran at 10%, global unit case volume rose 3%, and Coca-Cola Zero Sugar volume jumped 13% across all geographic segments.

Operating margin expanded to 35% from 33%, and management raised comparable EPS growth guidance to 8% to 9% versus the $3.00 baseline in 2025, with free cash flow targeted near $12.2 billion. New CEO Henrique Braun said, “We’ve had a strong start to the year. Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.”

At around $84, shares trade at a forward P/E of 24 with a 3% dividend yield backed by a 63rd consecutive annual increase. Our model targets $90.13 base case with 8% upside, supported by 79% bullish analysts.

The caveat: Asia Pacific comparable operating income declined 17% in Q1, and the pending Coca-Cola Beverages Africa sale creates a roughly 4% headwind on net revenues.

Procter & Gamble (NYSE: PG) Procter & Gamble (NYSE:PG) is the laggard turning the corner. Shares are down 6% over the past year but have rebounded 6% in the past week, suggesting the rotation trade is already pulling capital into this name. The Q3 FY2026 report (filed April 24, 2026) showed core EPS of $1.59 versus $1.5552 expected on net sales of $21.235 billion, up 7% year over year. Organic growth of 3% came in broad-based across all five segments, with Beauty leading at 7% organic growth.

The summer angle is structural. Deodorants, laundry, paper, and skin care peak in the warm months, and P&G’s brand stable, including Tide, Pampers, Gillette, Olay, and Charmin, prints reliable cash regardless of macro stress. Management is funneling that cash back to shareholders aggressively: about $10 billion in dividends and $5 billion in repurchases for FY2026, on top of a 70th consecutive annual dividend increase and 136th straight year of dividend payments since 1890.

At around $149, PG trades at a forward P/E of 21 with a 3% yield. Our base case sees $165.63, or 11% upside. CEO Shailesh Jejurikar noted P&G is “increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment.”

The caveat: a roughly $400 million after-tax tariff headwind plus $150 million in commodity costs have management guiding to the lower end of the $6.83 to $7.09 core EPS range.

Colgate-Palmolive (NYSE: CL) Colgate-Palmolive (NYSE:CL) carries the highest model-implied upside in this trio. Q1 2026 (filed May 1) produced adjusted EPS of 97 cents versus the 94-cent consensus on revenue of $5.32 billion, up 8.4% year over year. Organic sales grew 3%, with Latin America up 15%, Europe up 12%, and Asia Pacific up 9%. CEO Noel Wallace called it a “strong start to 2026, with broad-based top and bottom-line growth.”

The summer angle layers nicely: Speed Stick and Irish Spring for personal care, EltaMD for skin, and Hill’s Science Diet for pet travel. Hill’s Pet Nutrition grew 7% in the quarter. Colgate is a Dividend Aristocrat with 63 consecutive years of annual dividend increases and returned $2.9 billion to shareholders in 2025.

At around $89, the stock yields 2% with a forward P/E of 23. Our model targets $105.51 with 17% upside, anchored by a 0.32 beta and 65% bullish analyst sentiment with zero sell ratings.

The caveat: tariffs forced a downward revision to GAAP gross margin guidance, North America organic sales declined 2% with volume off 3%, and the SGPP restructuring program expanded to $350 to $550 million in cumulative charges.

What Investors Should Watch Next All three names share a profile that suits the current setup: low beta, broad-based organic growth, multi-decade dividend records, and consistent earnings beats. Coca-Cola offers the cleanest seasonal volume story, P&G the deepest dividend pedigree at the most reasonable forward multiple, and Colgate the highest model-implied upside. Watch June quarter prints from each and the trajectory of tariff costs for the household products names: that is where the next leg of guidance gets reset.