My thoughts from last year about my investment in Colgate.
Continuing my investment in Colgate—which has been underperforming since 2 years—has been a very painful experience. I still have my conviction on this stock after five years, albeit it is now on shaky ground.
My conviction has paid off this year. From the beginning of the year, Colgate has experienced a steady upward trend, with a remarkable increase of over 65%. Following three years of lagging behind the Nifty 50 Index, my investment in Colgate has now successfully bridged the gap. Given the current momentum, I am confident that it will outperform the Nifty 50 Index in the coming year. Additionally, the dividends have proven to be satisfactory.
Investment through the years
Returns
The dividend yield at cost mentioned in the chart above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.
| Fiscal year | Dividend yield at cost |
| 2017-18 | 0.87% |
| 2018-19 | 1.83% |
| 2019-20 | 0.59% |
| 2020-21 | 3.31% |
| 2021-22 | 1.40% |
| 2022-23 | 2.51% |
| 2023-24 | 3.07% * |
To calculate the dividend yield at cost in the above table I use the below formula.
(Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100
Profit
XIRR
Related reading
Note: I missed including some of my Colgate-Palmolive (India) Limited share purchases in previous articles. These are rectified in this post, so there will be difference between my previous analysis and this one.
