What is the impact of the two-for-one stock split on my existing shares?

Following the stock split, which is structured as a 100% stock dividend, for every share of Colgate-Palmolive stock you owned as of the record date (April 23, 2013), you will receive one additional share. This means your total number of shares will double, and the price per share will be adjusted accordingly, so the total market value of your holdings should remain approximately the same immediately after the split.

When will the stock split take effect?

The stock split will be effective on May 15, 2013, for shareholders who are on record as of the close of business on April 23, 2013.

Why did Colgate-Palmolive announce a stock dividend and a dividend increase?

A stock split, particularly in the form of a stock dividend, is often done to make the stock price more affordable and accessible to a wider range of investors, potentially increasing trading liquidity. The increase in the quarterly cash dividend signals the company's strong financial performance and its commitment to sharing profits with its shareholders, suggesting management's optimism about future earnings.

Does the dividend increase mean the company is paying out more in total dividends?

Yes, with the increase in the regular quarterly cash dividend and the doubling of outstanding shares due to the stock split, the company intends to distribute more cash to its shareholders in total on a quarterly basis, assuming the dividend per share is increased and then applied to the new, larger number of shares.

CL 8-K SEC Disclosure — Mar 7, 2013

Summary

Colgate-Palmolive Company (CL) announced a significant capital return initiative through a Form 8-K filing on March 7, 2013. The company declared a two-for-one stock split, effectively doubling the number of outstanding shares. This move is typically undertaken to make the stock price more accessible to a broader range of investors, potentially increasing liquidity. In conjunction with the stock split, Colgate-Palmolive also announced an increase in its regular quarterly cash dividend. This signifies management's confidence in the company's ongoing financial performance and its commitment to returning value directly to shareholders. Investors should view these actions positively, as they often signal a healthy and growing company seeking to reward its stakeholders.

Key Highlights

1Colgate-Palmolive announced a two-for-one stock split, effective as a 100% stock dividend.
2The stock split is payable on May 15, 2013, to shareholders of record as of April 23, 2013.
3The company also increased its regular quarterly cash dividend.
4The press release announcing these events was filed on March 7, 2013.
5These actions are aimed at increasing share accessibility and returning capital to shareholders.
6The filing indicates management's confidence in the company's financial stability and growth prospects.

COLGATE PALMOLIVE CO 8-K Report, Corporate Update (Mar 7, 2013)

Summary

Key Highlights

Frequently Asked Questions