Colgate-Palmolive Lifts Quarterly Dividend 6.9%

Colgate-Palmolive Co. (CL) on Thursday boosted its quarterly dividend 6.9%, joining a growing list of companies that have raised payouts to shareholders in recent months.

The 4-cent increase to 62 cents a share will cost the company about $76.7 million more each year. Colgate has paid uninterrupted dividends on its common stock since 1895.

Many companies have launched shareholder-friendly initiatives like dividend increases in recent months as a way to reward investors while making use of growing cash stockpiles.

The higher payout comes as Colgate and other consumer products companies look forward to some relief from rising commodity costs, which have pressured the company's results over the past year.

Colgate recently said it expects ongoing cost savings programs and higher prices, many of which have already been implemented, to help increase gross margins.

The toothpaste giant on Thursday separately disclosed the election of Google Inc. (GOOG) Chief Business Officer Nikesh Arora to its board effective March 15. Colgate said Arora, 44, will bring strong knowledge of finance and information technology to its board.

Shares were recently up 86 cents at $93.69 midday Thursday, in line with the broader market. The stock has climbed 20% over the past year.

 
   -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [e-mail]