Colgate-Palmolive announces dividend increase and share buyback scheme

Colgate-Palmolive has announced a fresh dividend increase and a share repurchasing scheme, reflecting the recent strength of its financial performance.

The buyback programme will encompass the repurchasing of shares of common stock with an aggregate purchase price of up to $5 billion (3.25 billion pounds). This new scheme replaces the programme approved in September 2011 and  is expected to last three or four years.

Meanwhile, the firm's board has increased its ongoing quarterly common stock cash dividend by six percent, effective as of the second quarter of 2015. The new rate of $0.38 per share is up by two cents on the previous amount.

The new dividend is to be paid on May 15th 2015 to shareholders of record as of April 23rd 2015. Colgate-Palmolive has paid uninterrupted dividends on its common stock since 1895.

Ian Cook, chairman, president and chief executive officer of Colgate-Palmolive, said: "We are pleased that our strong balance sheet and excellent cash generation worldwide has enabled us to increase the quarterly cash dividend and launch a new share repurchase programme."

During the final quarter of 2014, the company achieved an organic sales increase of six percent, on the back of rising volumes and improved margins.