Colgate Palmolive: The Best Dividend Stock In The World?

Even though I’ve generally anointed The Coca-Cola Company as the signature stock that I associate this website with, I’m opening myself to the possibility that perhaps Colgate-Palmolive should be the quintessential company that I reference here.

At this point, I realize we’re arguing degrees of perfection in the business model. But the reason why I’m considering the possibility that Colgate-Palmolive should become my primary exemplar is this: there are two factors that make a company a quality investment. First, there is the quality of current profits. And secondly, there is the long-term growth prospects for those profits.

In terms of quality of the business model, Coca-Cola and Colgate-Palmolive are nearly identical. They sell well-branded products that people buy regularly, and they do it at a cheap price. The returns on shareholder equity for both companies is enormous; in the Wild West days, you would need a ski mask and pistols … Read the rest of this article!

Cash On Hand As You Go Through Life

Benjamin Graham warned that investing and the pursuit of wealth through markets and publicly traded business ownership involved a very important contingency. Namely, it was non-negotiable that the investor would not put himself in position where he would have to sell stock out of necessity. Most financial analysis focuses on developing the temperament to withstand selling when the market is low. Equal time should be devoted to making sure that a forced sale does not occur due to an unexpected car repair bill, home expense, or some other life event that requires a withdrawal from your investment accounts.

If you have to make a hardship withdrawal from your 401(k) during a year like 2009, decades of accumulated wealth could be lost in an instant due to insufficient planning for adversity. I say that not as a judgmental statement, but rather, none of my articles on my investing will actually lead … Read the rest of this article!