1 Overlooked Dividend King With a 63-Year Winning Streak Worth Buying Now

Dividend Kings are a relatively small group of dominant businesses that have increased their dividends for at least 50 consecutive years. Two of the most widely held consumer goods names on the list are Coca-Cola and Walmart, but investors shouldn't ignore the market leader in toothpaste.

Colgate-Palmolive (NYSE: CL) has raised its dividend for 63 straight years. The company recently declared another quarterly payment of $0.53 per share, following a 1.9% increase earlier this year. That puts the stock's forward (12-month) yield at an above-average 2.34%.

Here's why Colgate looks built to pay dividends for a lifetime.

Image source: Getty Images.

Repeat sales support growing dividends

Colgate is the top toothpaste brand, with a 41% global market share in 2025. Oral care accounts for nearly half of the business, which helps keep demand steady throughout the year. Personal care, home care, and Hill's Pet Nutrition round out a portfolio that generates about $20 billion in annual sales.

Investing in a toothpaste brand can make for an ideal dividend investment because consumer demand is driven by habit. Most people stick with one brand for years, which helps explain why Colgate remains such a durable business.

Over the last 10 years, total revenue has grown consistently at a low single-digit annual rate. The dividend has followed a similar path, rising about 3% annually.

Colgate pays out a high share of earnings (about 83%). However, the payout ratio is much lower relative to free cash flow at 43%, which is the better yardstick for dividend safety, as it reflects the cash flow a business generates after expenses and capital spending. Free cash flow also rose 14% year over year on a trailing-12-month basis. That cushion gives Colgate room to maintain -- and keep raising -- its dividend even if growth slows in a recession.

Investors can expect steady growth

Colgate's competitive moat is built on strong brands and global distribution. It sells in more than 200 countries, and its strongest growth last quarter came from emerging markets, led by India, Brazil, Mexico, and China.

Dividend investors should also look for improving efficiency. Management has been using artificial intelligence (AI) to sharpen marketing, support market share gains, and manage costs. This should ultimately lead to free cash flow and earnings that grow slightly faster than revenue.

Analysts expect earnings to grow around 5% annually. With sticky consumer demand and steady sales, Colgate can be the kind of dividend compounder investors hold for years.

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