We recently published a list Dividend Capture Strategy: 15 shares with a high yield to buy in April. In this article we will look at where Colgate-Palmolive Company (NYSE: CL) stands against other best shares with a high return to buy in April.
Dividend investing seems like a simple strategy on the surface, but in reality it requires a much deeper analysis. These shares are best known for their long -term assessment, a characteristic that is recognized by seasoned investors. Over the years, dividend growth shares have surpassed other asset classes during periods of economic decline.
This can also be observed in the current economic landscape. With the Trump administration or soft economic data trade war, dividend shares can perform better according to analysts. Moreover, these shares are currently being traded at a lower price-win ratios than the wider market, which could be a great access point for income investors. Wolfe research analyst Chris Senyek has also advised investors to pay attention to dividend growth shares, because they can serve as a buffer against the return of the market. This is what he said:
“Our favorite defensive dividend strategy, dividend aristocrats, is a good place for investors to ‘hide’ in the case of an economic delay or recession environment.”
For this he recommends investing in the Dividend Aristocrats Index, which follows the performance of companies that have achieved 25 consecutive years of dividend growth. This year, the index is performing better than the wider market, with more than 2%, compared to the fall in the market of almost 5%.
Although Dividend Aristocrats are winning this year, their performance was less impressive in the past two years. Now that AI was central, dividend shares were overlooked by investors, so many still acted with a discount. This year, analysts present a strong view of dividend shares because of the changing economic and political landscape. According to a report from BNY Investments, dividend shares are ready for growth this year, because technical shares also entered into the dividend area last year. Combining factors of growth and income can predict well for dividend shares. From September 2024, almost 80% of companies in the S&P index pays dividends to shareholders, of which 24% of the technical sector. The percentage has grown considerably from 13% ten years ago, as reported by BNY.
Dividend yield is an important aspect of dividend investment, and investors often pay attention to returns when taking investment decisions. However, falling for yields does more harm than good. Dan Lefkovitz, a strategist for Morningstar Indexes, made the following comment for investors with a preference for high yields:
“It is really crucial to be selective when it comes to buying dividend-paying shares and chasing yields. In search of the most return-rich areas of the market, you can often lead to restless areas and dividend falls companies that have a nice yield that ultimately does not continue.
Although dividend shares are best known for their long-term difference, some investors also make a profit in the short term due to a dividend cover strategy. By using this approach, investors can buy shares from the company just before it pays dividends and then sell those shares shortly after receiving the dividend. The most important goal of this strategy is to take advantage of the dividend income, while also benefits from the price increase of a share prior to the dividend announcement. That is why we will take a look at some of the best dividend supplies for a strategy for recording dividend.
Dividend Capture Strategy: 15 shares with a high yield to buy in April
A range of toothpasta, toothbrushes and mouthspers on a clear background, which emphasize the company’s oral care products.
Our methodology:
For this list we have selected dividend shares that will trade ex-dividend in April 2025. Ex-dividend date indicates the Cutoff day to buy a share to receive the upcoming dividend payment. These shares have dividend yields above 2%, from 30 March. The shares are arranged according to their ex-dividend dates.
At Insider Monkey we are obsessed with hedge funds. Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Ex-dividend Date: April 17
Dividend yield from March 30: 2.24%
Colgate-Palmolive Company (NYSE: CL) is a multinational company located in the US that is known for its strong presence in oral care, personal care, home care and PET food. If a company for a staple from the consumer, it remains stable during economic decline, because essential products such as washing -up liquid and deodorant have less chance of being cut from household budgets compared to discretionary items. Although many companies in the household goods sector have had difficulty with falling sales volumes due to challenges in the industry, Colgate-Palmolive has succeeded in defying the trend.
In its tax income report 2024, Colgate-Palmolive Company (NYS: CL) first crossed the $ 20 billion turnover, which reflects an increase of 4%. This also meant his sixth consecutive year of the growth of organic turnover within or exceeds the target range from 3% to 5%. Strong sales momentum and improved operational efficiency reinforced the bottom line, with the net income and the profit per share that achieved a double digits of the previous year.
Colgate-Palmolive Company (NYSE: CL) has a strong dividend growth history, which includes 62 consecutive years. This dividend growth was supported by the company’s robust balance. In FY24 it reported an operational cash flow of more than $ 4 billion, which grew by 10% from the same period last year. The free cash flow of $ 3.5 billion also rose from $ 3 billion in the period last year. The company has also returned $ 3.4 billion to shareholders during the year by dividends and purchasing shares. The share has a dividend yield of 2.24%, from 30 March.
Generally CL is in 2nd place On our list of the best the best shares with high returns for a dividend tamper strategy. Although we recognize the potential of CL as an investment, our conviction is that some deeply undervalued dividend shares have a greater promise to deliver a higher return, and to do this within a shorter time frame. If you are looking for a deeply undervalued dividend share that is promising than CL, but that is traded with 10 times the income and his income increases at double digits per year, view our report on the dirt cheap dividend stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider Monkey.
