This Is Not The Right Time To Make A Large Colgate-Palmolive Stock Purchase

Colgate-Palmolive is probably one of my favorite businesses—if someone said I had to make a decision today to only own eight stocks for the rest of my life, and the list could never be changed, it would occupy one of the eight slots (with Nestle, Coca-Cola, PepsiCo, General Electric, Johnson & Johnson, Procter & Gamble, and ExxonMobil occupying the others).

You’re already familiar with its product line—Colgate toothpaste, Hill’s petfood, Irish Spring soap—and the fact that the company has been growing dividends for 50+ years (and, like Procter & Gamble, has been paying dividends in uninterrupted quarters dating back to the 1890s). Not only is it a blue-chip with a long history, but its recent growth has been good as well: In the past ten years, revenues have grown by 7.5% annually and dividends have grown by 12.5% annually. That means the company has meaningful top-line growth, and not only do you get the safety inherent in a durable business model with a very long track record, but you are receiving growth in your income at a substantial rate as well.

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T. Rowe Price Africa & Middle East Fund: Should You Buy It?

Yum Brands. Diageo. Nestle. Wal-Mart. Coca-Cola. If you ever develop the urge to invest in Africa, look to buy stock in those five companies which are currently investing throughout the continent to mixed results, although Nestle is once again proving that it has the business model to make money anywhere.

I was reading through the T. Rowe Price Africa & Middle East Fund (ticker symbol TRAMX), and I was reminded of the statistic that there has never been an African-focused fund open to American retail investors that has beaten the S&P 500 because it is extraordinarily difficult to successfully predict African firms that would serve as suitable long-term investments.

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