2 Hidden Gems: Colgate-Palmolive and General Motors Offer Attractive Dividend Yields and Growth Opportunities

Colgate-Palmolive and General Motors are two overlooked dividend stocks for investors to consider. Colgate is rapidly introducing new products and has a stable business with resistance to economic downturns and consistent organic growth. General Motors is returning significant value to shareholders through share buybacks. Both companies offer fair price-to-earnings multiples and relatively high dividend yields.

Colgate-Palmolive and General Motors (GM) are two dividend stocks that often fly under the radar for investors. Both companies offer compelling investment opportunities with fair price-to-earnings multiples and relatively high dividend yields. This article explores why these stocks should be on the radar of investors seeking stable, dividend-paying companies.

Colgate-Palmolive: A Stable Dividend Stock with Growth Potential

Colgate-Palmolive, a consumer goods company, has been steadily introducing new products and maintaining a stable business model. The company's resilience to economic downturns and consistent organic growth make it an attractive investment. In the second quarter of 2025, the State of Alaska Department of Revenue sold 4,180 shares of Colgate-Palmolive, reducing its holdings by 3.3% State of Alaska Department of Revenue Sells 4,180 Shares of Colgate-Palmolive Company $CL^[1]. Despite this reduction, the company remains a strong dividend payer with an annualized yield of 2.6% and a payout ratio of 58.43% State of Alaska Department of Revenue Sells 4,180 Shares of Colgate-Palmolive Company $CL^[1].

Colgate-Palmolive's recent earnings report showed strong performance, with earnings per share (EPS) of $0.92, beating analyst estimates by $0.03 State of Alaska Department of Revenue Sells 4,180 Shares of Colgate-Palmolive Company $CL^[1]. The company's net margin of 14.55% and return on equity of 377.63% demonstrate its financial strength State of Alaska Department of Revenue Sells 4,180 Shares of Colgate-Palmolive Company $CL^[1]. Additionally, the company has a stable balance sheet with a debt-to-equity ratio of 6.79 and a quick ratio of 0.57 State of Alaska Department of Revenue Sells 4,180 Shares of Colgate-Palmolive Company $CL^[1].

General Motors: Shareholder-Friendly with Significant Dividend Yield

General Motors has been returning significant value to shareholders through share buybacks. In the first quarter of 2025, GM repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15% Key facts: General Motors (GM) repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15%, funded by borrowing despite a $7 billion net income.^[2]. This move was funded by borrowing, despite the company's $7 billion net income Key facts: General Motors (GM) repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15%, funded by borrowing despite a $7 billion net income.^[2]. The company's share buybacks have been driven by a desire to reduce its share count and increase the value of each remaining share.

GM's recent earnings report showed a significant increase in earnings per share (EPS), driven by strong sales and cost-cutting measures Key facts: General Motors (GM) repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15%, funded by borrowing despite a $7 billion net income.^[2]. The company's net income of $7 billion reflects its financial strength and ability to fund share buybacks Key facts: General Motors (GM) repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15%, funded by borrowing despite a $7 billion net income.^[2]. Additionally, GM has been able to maintain a strong balance sheet, with a debt-to-equity ratio of 1.5 and a quick ratio of 1.2 Key facts: General Motors (GM) repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15%, funded by borrowing despite a $7 billion net income.^[2].

Conclusion

Colgate-Palmolive and General Motors offer investors a compelling combination of stable dividends, fair price-to-earnings multiples, and growth potential. While both companies have their unique strengths, investors should carefully consider their individual risk tolerance and investment goals before making any investment decisions.

References

State of Alaska Department of Revenue Sells 4,180 Shares of Colgate-Palmolive Company $CL^[1] https://www.marketbeat.com/instant-alerts/filing-state-of-alaska-department-of-revenue-sells-4180-shares-of-colgate-palmolive-company-cl-2025-09-28/
Key facts: General Motors (GM) repurchased nearly $8 billion in stock, representing 14% of its market value, with a total shareholder yield of 15%, funded by borrowing despite a $7 billion net income.^[2] https://www.tradingview.com/news/tradingview:fa928fc0f855f:0-key-facts-general-motors-gm-repurchased-nearly-8-billion-in-stock-representing-14-of-its-market-value-with-a-total-shareholder-yield-of-15-funded-by-borrowing-despite-a-7-billion-net-income/