Consumer products giant Colgate-Palmolive Company (NYSE:CL) announced on Thursday that its board has approved a two-for-one stock split. The company has also raised its quarterly dividend by 10 percent. The stock splitting will occur through a stock dividend on April 23, and new shares will be distributed on May 15. The total number of outstanding shares of the New York-based company will double from 468 million to 936 million.

colgate palmolive

Companies usually split their stock if they realize that their stock is trading far above their peers’ stock or if the prices of individual shares get too expensive. The value of a shareholder’s stake will not change due to splitting. You will just own double the stock at half the price.

Quarterly dividends will be raised by 6 cents to 68 cents, to be paid on May 15 to shareholders on record on April 23. Now the regular dividends will be $2.72 per year, or $1.36 after the split.

Colgate-Palmolive Company (NYSE:CL) posted a 1 percent rise in its fourth quarter profit amid cost cuts and increased prices. Consumer product manufacturers have been trimming costs and raising prices as raw material prices continue to rise. Colgate-Palmolive Company (NYSE:CL) announced to lay off 6 percent of its global workforce through 2016 under a cost-cutting program.

For the full year of 2012, the Colgate toothpaste maker’s net income rose 1.7 percent to $2.47 billion. Last year, Colgate Palmolive Co. generated $3.2 billion in cash from operations, 10 percent more than in 2011. Ian Cook, chairman and CEO of Colgate-Palmolive Company (NYSE:CL) said that the company maintained excellent growth momentum globally in 2012, helped by new product successes.

Colgate-Palmolive Company (NYSE:CL) manufactures and markets personal care, oral care, and pet nutrition under Colgate, Ajax, Palmolive, Hill’s Science Diet, Mennen, Hill’s Prescription Diet, Speed Stick, Irish Spring, Softsoap, and Tom’s of Maine.

Shares soared 0.54 percent to $115.97 at 10:48 AM EST in New York trading. Colgate-Palmolive Company (NYSE:CL) stock is up 10 percent this year so far, compared to 8.1 percent gain in S&P 500 Index.