Colgate-Palmolive Company

What does it do?

Colgate-Palmolive makes the everyday products you probably used this morning — toothpaste, soap, shampoo, and dish liquid. You almost certainly recognize their brands: Colgate toothpaste, Palmolive dish soap, and Hill's Science Diet pet food. They sell these products in over 200 countries, meaning someone in Brazil, India, and Germany is all buying Colgate toothpaste at roughly the same time you are. It is one of those companies whose products sit in nearly every bathroom and kitchen on the planet.

How does it make money?

Colgate generates almost all of its $20.4 billion in annual revenue from two buckets. The first and largest is Oral, Personal and Home Care — think toothpaste, shampoo, soap, and cleaning products sold through supermarkets, pharmacies, and online retailers worldwide. The second is Pet Nutrition through its Hill's brand, which sells premium veterinary-recommended pet food and has been one of Colgate's fastest-growing divisions. Revenue grew modestly from $20.1B to $20.4B last year, and with a net income of $2.1B, they convert roughly 10 cents of every dollar of sales into profit.

Why do investors care?

The core appeal is reliability — Colgate has paid a dividend every single year for over 60 consecutive years, which is rare and deeply attractive to long-term investors. The growth story leans on two things: expanding in emerging markets like India, Southeast Asia, and Africa where millions of people are entering the middle class and upgrading their personal care habits, and continued premiumization — getting existing customers to trade up to pricier products like electric toothbrushes or prescription pet food. For the thesis to work, Colgate needs to defend its shelf space against private-label brands and keep Hill's Pet Nutrition on its growth trajectory.