In this article we discuss the 5 best dividend stocks to buy according to Terry Smith. If you want to read our detailed analysis of Smith’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Terry Smith.
5. Colgate-Palmolive Company (NYSE: CL)
Smith’s Stake Value: $9,462,000
Percentage of Terry Smith’s 13F Portfolio: 0.03%
Dividend Yield: 2.21%
Number of Hedge Fund Holders: 48
Colgate-Palmolive Company (NYSE: CL) produces and trades consumer products globally. It was founded in 1806 and is ranked fifth on the list of 10 best dividend stocks to buy according to Terry Smith. Colgate currently has a $68.91 billion market capitalization and was able to deliver an 11.55% return in the past 12 months.
On June 23, Peter Grom, an analyst at UBS, initiated coverage on Colgate-Palmolive, rating the stock as “Buy,” with a price target of $95.00. Colgate has also paid consistent dividends over the last several years. On June 10, the company declared a quarterly dividend of $0.45 per share, in line with the previous. On April 30, Colgate-Palmolive Company (NYSE: CL) posted earnings for the first quarter of 2021. Its earnings per share was $0.80, beating market predictions by $0.01.
Fundsmith LLP owns 120,029 shares in the company worth $9.46 million. Hedge fund sentiment increased for Parker in the third quarter. Insider Monkey’s data shows that 48 elite hedge funds held stakes in the company in the first quarter of 2021, up from 46 funds a quarter earlier.
“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.”