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2 Overlooked Dividend Stocks for Investors to Pounce On
The Motley Foolยท 2025-10-03 08:40
Core Insights - The article highlights two overlooked dividend stocks, Colgate-Palmolive and General Motors, as potential investment opportunities in the current market environment Colgate-Palmolive - Colgate-Palmolive is positioned to thrive despite economic uncertainties due to its portfolio of essential goods and a strategy focused on research, innovation, and marketing [3][4] - The company has achieved 24 consecutive quarters of organic sales growth at or above its 3% to 5% target, indicating strong performance [4] - Colgate is addressing inflation through price increases and operational efficiency, with potential growth in its pet food segment and emerging markets [5][6] General Motors - General Motors has transformed its operations over the past two decades, focusing on producing desirable vehicles rather than overproduction [7] - GM leads the industry in full-size trucks and SUVs and has recently become the second-largest seller of electric vehicles in the U.S., following Tesla [8] - The company is investing $4 billion in U.S. assembly plants to increase capacity and reduce tariff exposure, supporting future growth [9] - GM has returned significant value to shareholders through stock buybacks and currently trades at a low price-to-earnings ratio of 9, despite an 86% increase in stock price over the past two years [10][11] Investment Consideration - Both Colgate-Palmolive and General Motors present compelling options for investors seeking overlooked dividend stocks, with Colgate offering a diversified business and GM demonstrating improved operational performance and shareholder value return [13]