By Dow Jones Business News, March 07, 2013, 09:11:00 AM EDT
By Saabira Chaudhuri
Colgate-Palmolive Co. ( CL ) said its board has approved a two-for-one stock split and an increase to its quarterly
dividend, moves it says reflect its positive outlook.
"Colgate finished 2012 with excellent growth momentum worldwide, driven by broad new product success," Chief Executive
Ian Cook said. "Today's actions demonstrate our confidence in the continued strong and profitable growth of Colgate's
The toothpaste-maker said the split will be through a stock dividend, while it increased its quarterly cash dividend
by 10%, both effective in the second quarter.
The number of stock splits has declined in recent years as some companies are still shellshocked by the sharp declines
of the financial crisis.
Throughout the 1990s, 64 companies in the Standard & Poor's 500-stock index, on average, split their stocks each year,
according to data from S&P Dow Jones Indices. Since the financial crisis, that number has hovered around 10 from 2008
through last year.
Colgate said the record date for the two-for-one split is April 23, with share distribution scheduled for May 15.
Total shares outstanding will increase to 936 million.
Colgate added the quarterly dividend of 68 cents a share on a pre-split basis, up from 62 cents, will be paid May 15
to shareholders of record as of April 23.
In January, Colgate said its fourth-quarter earnings rose 1.4% as the consumer-products company reported volume growth
and higher prices boosted revenue.
Shares edged up $1.14 to $116.49 in recent premarket trading. The stock has risen 24% in the past 12 months.
Write to Saabira Chaudhuri at email@example.com
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