Stocks are cooling their heels today after a hot start to 2024, with some market-watchers pushing back their timeline for how soon the Fed might start cutting interest rates this year. With a number of stocks in overbought territory, and valuations looking a bit stretched across some of investors' favorite sectors, it's worth taking a look at some of Wall Street's favorite reliable income picks - the Dividend Aristocrats.

Among this elite group of dividend-paying stocks, one consumer staples name just scored an upgrade after its latest earnings report impressed analysts - a development investors may have missed amid all of the recent Big Tech results. Here's a closer look at this recession-resistant stock, the latest forecast from Wall Street, and whether it's a good value for dividend investors right now.

Colgate Stock Beats on Q4 Earnings

Colgate-Palmolive Company (CL) is a more-than-century-old consumer goods giant, with a portfolio of brands spanning oral care, personal care, home care, and pet nutrition, sold under such well-known brands as Softsoap, Ajax, Irish Spring, and of course, Colgate and Palmolive. The company operates in over 200 countries, and is valued at $69.67 billion by market cap.

With a track record of 60 consecutive years of growing dividends, CL isn't just a Dividend Aristocrat, but a Dividend King. The stock offers a forward yield of 2.27%, based on the current quarterly payout of $0.48. This makes CL a prime choice for investors seeking a reliable passive income stream.

Along with the steady dividend payments, CL stock is up 13.5% over the past 52 weeks.

On Jan. 26., Colgate dropped some better-than-projected fourth-quarter 2023 results. They outshone analysts' earnings expectations, with Q4 diluted earnings per share (EPS) hitting $0.87 versus the expected $0.85. The bottom-line beat was nothing new for Colgate; they've consistently topped consensus EPS estimates in each of the past four quarters.

Revenue for the period climbed 5.5% YoY to $4.95 billion, thanks to stronger-than-forecast 7% organic sales growth, as pricing was up 7.0% during the period. Looking ahead, Colgate is targeting 2024 revenue growth of 1-4% against expectations of 3.5%.

What Do Analysts Expect for Colgate Stock?

Raymond James analyst Olivia Tong just hopped on the Colgate train, upgrading it to “outperform” following the Q4 numbers. 

In a note to clients, the analyst wrote, "In our view, CL is still in the early innings of improved top and bottom-line growth, balancing contribution from volume vs. price, emerging markets vs. developed, and across the product portfolio."

Plus, while the shares aren't cheap compared to their sector peers - at roughly 24x forward earnings, by Tong's math - those multiples are in line with CL's longer-term historical valuations.

Overall, analysts agree; they've given Colgate-Palmolive a consensus “Strong Buy” rating. Out of 17 analysts tracking the stock, 11 call it a “Strong Buy,” 2 say “Moderate Buy,” and 1 says “Hold.” The average 12-month price target is $88.18, a premium of about 5% to current levels. 

For investors seeking steady income, upside potential, and long-term earnings growth backed by pricing power, Colgate-Palmolive stock could be a Dividend Aristocrat worth scooping up at current levels.