Colgate-Palmolive dividend
Colgate-Palmolive's dividend path starts at $2.14 and rises to $2.22 in the base case. Its forward payout is roughly 52%, while dividends and buybacks used $14,663 million of $14,838 million in free cash flow from 2021 through 2025.
How much does Colgate-Palmolive pay per share?
The base dividend path rises from $2.14 to $2.22. The bear holds at $2.12, while the bull reaches $2.32. The starting floor is the declared $0.53 quarterly rate, or $2.12 annualized. The base assumes one-cent quarterly increases because the company has paid uninterrupted dividends for 63 years and the forward payout is roughly 52%. Weak volume and competing cash needs justify a pause in the bear case.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 3,268 (2,954 / 3,379) | 3,441 (2,967 / 3,632) | 3,618 (3,036 / 3,879) |
| Shares (millions) | 787 (793 / 784) | 777 (789 / 772) | 768 (785 / 761) |
| Dividends per share | 2.14 (2.12 / 2.16) | 2.18 (2.12 / 2.24) | 2.22 (2.12 / 2.32) |
| Price to earnings | 21.00 (16.00 / 24.00) | 20.00 (15.00 / 24.00) | 19.00 (14.00 / 23.00) |
Does Colgate-Palmolive cover its dividend with cash?
Free cash flow is cash generated by operations after spending on plants and equipment. From 2021 through 2025, Colgate generated $14,838 million of it. Shareholder dividends and buybacks used $14,663 million, while minority owners received another $773 million.
In 2025, actual buybacks were $1,210 million, although the board authorized up to $5 billion. An authorization permits future purchases; it is not itself a payment. New shares sold brought in $101 million, while net debt ended 2025 at $6,593 million. Dividends delivered cash, but buybacks created value only if Colgate bought its shares at worthwhile prices. The next test is whether its spending keeps customers choosing those brands.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 3,634 | 3,546 | 3,040 | 1,860 | 2,758 |
| − Dividends paid | 1,671 | 1,626 | 1,584 | 1,562 | 1,515 |
| − Share buybacks | 1,210 | 1,739 | 1,128 | 1,308 | 1,320 |
| = Free cash flow not paid out | 601 | 18 | 163 | ||
| Paid out, % of free cash flow | 79.3% | 94.9% | 89.2% | 154.3% | 102.8% |
What this means. In 2022 and 2021, the company paid shareholders more cash than it generated, covering the difference with savings or new borrowing.
What could change Colgate-Palmolive's dividend?
Cash allocation will also matter. Buyback spending above or below the assumed pace, together with the board’s next dividend decision, would change the share-count and dividend paths. Management’s one-to-four-percent organic-sales guide remains the base anchor, but actual volume, margins and cash conversion will determine whether that anchor holds.
What is Colgate-Palmolive's dividend yield at today's price?
At $94.11 a share, the company’s shares are worth $75,021.93 million, while enterprise value is $81,425.93 million. Enterprise value estimates the cost of owning the operating business, including lenders’ claims. Like buying a house with a mortgage attached, the buyer receives the asset but also takes on its financing obligations. The $6,404 million gap is net debt, so future cash must serve lenders before shareholders.
| Today (Oct 16, 2026) | |
|---|---|
| Share price | 94.11 |
| Market value (calculated) | 75,021.93 |
| Enterprise value (calculated) | 81,425.93 |
| Dividend yield (calculated) | 2.3% |
What this means. The enterprise value is higher than the market value because it includes the company’s debt after subtracting its cash and short-term investments.