Should I Buy Colgate (CL)? Finance YouTuber Analysis

The YouTuber suggests Colgate-Palmolive as a low-beta, stable stock with a strong market position. The company holds top market shares in various household products and is a dividend king, having increased its dividend for over 61 consecutive years, indicating reliability and stability.

“Colgate Palala ticker CL with an even lower beta of 041 and a 2.26 dividend yield of course Colgate doesn't have that regulated Monopoly like Duke but it's about as close as you can get”

The speaker identifies Colgate as a stock showing positive momentum, indicated by its 50-day Simple Moving Average (SMA) crossing above its 200-day SMA, a 'golden cross' technical signal. This suggests a reversal from a downtrend and building upward momentum, making it an opportune time to consider buying.

“what I found is cl colgate an interesting company that I think a lot of us know in terms of our oral hygiene take a look at this now we're looking at right here is up in the top left they tell you sma 20 sma 50 estimate 200. so our orange line crosses our i guess lighter almost yellow line right here and that's indicated right here so our darker orange line has crossed the 200 sma this lighter line right here at around 80 so now what we're seeing is that look what happened as we have crossed colgate hit up to a nice high up here towards 86 almost and then it pulled back but what are we seeing as we've getting that cross it started to bounce back to the upside and colgate has been one of those stocks showing really nice momentum over the past couple of months”

Travis Hoium suggests avoiding Colgate Palmolive due to concerns about its dividend sustainability. He notes that the dividend payout ratio has risen above 100% of earnings, and while revenue is up due to significant price increases, organic volume is declining across most regions. This indicates a fundamental problem where the company is losing market power as demand shifts, putting its financial stability and dividend at risk.

“I think Colgate Palmolive's dividend is in a lot more trouble than we think and a lot of the companies that have been in a similar position we've seen similar Trends.”