Colgate states decision to reflect dividend reflects confidence

Colgate’s decision to increase dividends reflects the company’s confidence in the strong and profitable growth of the business, it has asserted.

The consumer products firm, which part specialises in oral care, announced yesterday that bonuses to shareholders would increase by ten per cent from 40 cents (28 pence) to 44 cents for the second quarter of this financial year.

People on record owning stocks by April 24th 2009 will be eligible for the bonuses, which are to be paid on May 15th 2009.

Ian Cook, chairman, president and chief executive office of Colgate, explained the action displayed the company’s “cash generation capabilities and our firm commitment to building value”.

On February 11th 2009, Mr Cook made a presentation at the Consumer Analyst Group of New York Conference, which was available for investors to view via a webcam. A recording of the meeting is available on the firm’s website.

Colgate sells its products in over 200 countries and is a market leader for key items such as toothpaste and toothbrushes.

Other healthcare and household articles it produces includes soaps, deodorants, dishwashing detergents and fabric conditioners.