Published Mon, 16 Jan 2012 20:23 CET by DividendYields.orgIntroduction
Since I like to take good care of my teeth, I use mouthwash after brushing. While gargling, I was annoyed that every time I screwed the cap back on the bottle of Listerine® (I drink from the cap, yes), a little bit of mouthwash dripped from the cap on the bottle and the shelf, making it all very sticky. The previous bottle of mouthwash I used was Elmex Sensitive. For some of you an unknown brand maybe, but they really did something very clever: they made a little drinking tube inside the cap! Lo and behold, no more mouthwash dripping out, no more sticky bottles!
What does this have to do with dividend investing? Well... nothing really. But it gave me the idea to take a look at the companies behind all those bottles of mouthwash and see how they're doing, dividend-wise. So here we go.
How to invest in a clean taste?
Since this website is about dividend investing, the focus will be on stocks paying out dividend. Luckily, most producers of mouthwash are well-known companies and listed on the New York Stock Exchange: Colgate Palmolive (NYSE: CL), GlaxoSmithKline (NYSE: GSK), Jonhson & Johnson (NYSE: JNJ) and Procter & Gamble (NYSE: PG). All companies except GlaxoSmithKline are also S&P 500 Dividend Aristocrats.
Colgate Palmolive is owner of the GABA Group, which produces Aronal, Elmex and Meridol mouth-/dental rinses in Therwil, Switzerland. Colgate Palmolive had a net income of USD 2.5 billion in the last 12 months and has paid uninterrupted dividends on its common stock since 1895 and increased payments to common shareholders every year for 48 years.
GSK produces mouthwash under the name of Astring-O-Sol, made famous by model Joey Eastwood in the kissing booth TV commercial. GSK had a net income of GBP 3.3 billion (~USD 5 billion) in the last 12 months.
The graphs below show the Earnings Per Share (EPS) and Dividend Per Share of GSK.
Jonhson & Johnson
In 2006, Listerine® became a JNJ product with the acquiring of Pfizer Consumer Healthcare. Listerine® Antiseptic was created in 1879, making it the first-ever antiseptic mouthwash. JNJ is the world's sixth-largest consumer health company with a net income of USD 64 billion in the last 12 months. The JNJ stock has seen 49 consecutive years of dividend increases.
Procter & Gamble
Oral-B (since acquiring Gillette in 2005) and Scope are brands of mouthwash made by Procter & Gamble. P&G is the largest consumer goods company with a net income of USD 11.8 billion in 2011 and has paid uninterrupted dividends on its stock since 1890 and increased payments to shareholders every year for 54 years.
|Name||Dividend growth rate (5 years)||EPS growth (5 years)|
|Colgate Palmolive||12.83%||12.17 USD|
|Jonhson & Johnson||10.60%||7.35 USD|
|Procter & Gamble||11.37%||10.18 USD|
Disclosure: at the moment of writing, TopYields doesn't own any of the stocks mentioned.
|Stock name||Dividend Yield|
|Procter & Gamble||2.71|
|Johnson & Johnson||2.64|
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