Colgate-Palmolive Reportedly Considering $1 Billion Sale of Non-Core Brands
Colgate-Palmolive (CL) is reportedly exploring the sale of non-core personal care brands, including Softsoap, Irish Spring, and Speed Stick. The potential divestment could generate over $1 billion in proceeds as part of a strategic reallocation toward higher-growth segments like oral care and Hill's Pet Nutrition. This move aims to offset margin pressures in North America and optimize capital use. Despite the reported sale potentially unlocking shareholder value through operational efficiency, Colgate stock has underperformed year-to-date, trading below its major moving averages with significant selling pressure indicated by a low RSI reading. However, institutional investors remain bullish on CL shares based on recent 13F filings and robust dividend yields. Analysts maintain a 'Moderate Buy' consensus rating for Colgate-Palmolive in the remainder of 2026, with an average price target suggesting over 10% upside potential.
Topics: brand sale Colgate-Palmolive dividend yield shareholder value