SHARPE INCOME … Colgate (CL)

Posted on May 19 2015 - 9:14am by Sharpe Trade

The original Sharpe Income post can be found here.

The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.

We continue the discussion from the last entry.


So when you look at the PDF each Monday, you have no doubt noticed that there are several income instruments that I have yet to mention here at Sharpe Trade.  Quite frankly, I haven’t had the time.  On the PDF they are simply labeled as; ‘As Yet Un-Named Stock‘.

Well … there is no time like the present.  Know that one of the instruments that I have held for myself for some time, is Colgate Palm-Olive (CL).

You may notice that the dividend payout ratio for Colgate (CL) may not seem as attractive as say, IBM or American Express (AXP).  However, as I mentioned yesterday, there is no single ‘holy grail’ metric, and that includes the dividend payout ratio.  

So why use Colgate (CL) as an income instrument?  Well, there are a few reasons.   It is nicely diversified from my other holdings.  I have two tech companies (IBM and Microsoft).  I have a transport (Union Pacific).  I have a credit card company (American Express).  With Colgate, I have a Consumer Non-Cyclical company.  In addition … Colgate’s (CL) market share … which is huge … makes them a great choice.

Why do I bring up Colgate (CL) at this time?  Well, as I said, I have owned this for myself for some time.  And the other day as I was going over my records, I noticed I was paid the dividend for this quarter as income.  It was only at that time that I noticed I received yet another ‘raise’.  The third such ‘raise’, of a 5.556% increase.

We continue the Sharpe Income project with this next entry.

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