In this article, we will be looking at the 5 best dividend kings to buy now according to hedge funds. To see our detailed analysis of dividend investing, you can go directly to the 10 Best Dividend Kings to Buy Now According to Hedge Funds.
5. Colgate-Palmolive Company (NYSE: CL)
Number of Hedge Fund Holders: 48
Number of Years of Consistent Dividend Growth: 58
Dividend Yield: 2.18%
Colgate-Palmolive Company (NYSE: CL) deals with consumer products and their sale across the globe. Some of its major brands include the Colgate, Palmolive, and Protex brands, and it ranks 5th on our list of the best dividend kings to buy now according to hedge funds.
This June, UBS initiated coverage of Colgate-Palmolive Company (NYSE: CL) shares with a Buy rating and a $95 price target. Credit Suisse upgraded the company’s shares to Outperform in the same month, with a $95 price target as well. Analyst Kaumil Gajrawala commented that Colgate-Palmolive Company (NYSE: CL) is performing better than its peers because its sales are closer to category growth, and the company seems capable of handling the incoming inflation.
In the first quarter of 2021, Colgate-Palmolive Company (NYSE: CL) had an EPS of $0.80, beating estimates by $0.01. The company’s revenue was $4.34 billion, up 6.03% year over year and it beat estimates by $80.51 million as well. Colgate-Palmolive Company (NYSE: CL) has gained 0.85% in the past 6 months.
By the end of the first quarter of 2021, 48 hedge funds out of the 866 tracked by Insider Monkey held stakes in Colgate-Palmolive Company (NYSE: CL) worth roughly $2.30 billion. This is compared to 46 hedge funds in the previous quarter with a total stake value of about $1.51 billion.
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”