Colgate-Palmolive (CL) announced plans for a 2-for-1 stock split and a raise in its quarterly dividend on Thursday.
The stock split is scheduled for April 23 and shares will be distributed on May 15. Shares of the personal care company will jump to 936 million from 468 million.
Stock splits had been common before the recession but companies have been shying away from splitting in recent years. High-profile names with high priced stocks like Apple (AAPL) and Google (GOOG) have resisted a split.
Colgate shares were up less than 0.5% on the stock market today.
The personal care products maker also said it would raise its quarterly dividend by 10% to 68 cents per share from a previous dividend of 62 cents. The dividend will be payable on May 15.
“Colgate finished 2012 with excellent growth momentum worldwide, driven by broad new product success. Today’s actions demonstrate our confidence in the continued strong and profitable growth of Colgate’s global business,” said CEO Ian Cook.
Colgate’s shares have risen 11% since the start of the year. But the toothpaste and cleaning supply company has posted weak EPS and sales growth in recent quarters. Colgate reported seven quarters of single-digit EPS growth and reported a drop in sales in Q3.
Colgate only has a Composite Rating of 71, placing it ninth in the Cosmetics/Personal Care group. IBD’s Composite Rating rates stocks in five areas, with extra weight on earnings and stock price strength. Colgate’s 71 rating places it in the top 30% of stocks covered.
Prestige Brands Holdings (PBH) leads the group with a 97 rating.
Colgate has a 76 EPS rating, placing it No. 16 in the group. IBD’s EPS rating measures both recent-quarter and longer-term earnings growth rates.
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