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Tag Archives: CL

October 2004 Issue & Supplement

In this month’s visit, we’ll take our strategy a step further. Among our World-Class Franchises, we’re swapping out of a lower-yielding stock into another that will double our dividend income. Plus, I’m looking for our newest selection to deliver growth of up to 60% in its share price over the next three years.

Swap Out of Colgate

Colgate-Palmolive (NYSE: CL), one of our model portfolio stocks, yesterday trimmed its earnings outlook for the second half of 2004 by about 14%. I had been mulling a swap out of the stock, but now the argument is even stronger.


The stock market has had a marvelous run these past nine months — no doubt about it. There’s more to come in 2004, too. But I’m growing increasingly wary about the near-term outlook (the next three or four weeks, say). The number of NYSE stocks making new 52-week highs has contracted sharply over the past two weeks, while options speculators are buying calls like mad.


Wall Street is never loonier than at earnings season — as we’ve seen again today from the crowd’s reaction to the latest quarterly numbers from Colgate-Palmolive (NYSE: CL). Colgate hit its profit target perfectly, with a 10% increase in earnings per share.