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Colgate plans stock split, hikes dividend

March 7, 2013: 12:17 PM ET

Colgate-Palmolive announced plans Thursday to offer a 2-for-1 stock split and hike its quarterly dividend by 10%.

Shares of Colgate (CL), which have rallied 11% this year, edged higher in early trading.

The stock split will take effect after the close of business on April 23. Shareholders will receive one additional share of Colgate common stock for each share they own as of that date.

On a pre-split basis, Colgate will now pay a quarterly dividend of 68 cents per share, up from 62 cents per share.

The consumer products maker said the move reflects its "positive outlook."

Colgate is a leading seller of oral hygiene products, with nearly 45% of the global toothpaste market, and other "personal care" items such as deodorant and soap. It also makes household cleaning products and pet food. Colgate's main competitors include Johnson & Johnson (JNJ) and Procter & Gamble (PG).

Related: Betting on boring stocks pays off

In January, Colgate reported a 6% jump in fourth quarter net income to $671 million.

The company sells its products in over 200 countries, and has been growing rapidly in emerging markets. In the fourth quarter, Colgate said "organic sales" in emerging markets rose 10%.

However, last month, Colgate warned that it could lose approximately $120 million in the current quarter due to the devaluation of Venezuela's currency, the bolivar fuerte.

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Ben Rooney
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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