UPDATE 1-Colgate sets 2-for-1 stock split, 10 pct dividend hike

March 7 Thu Mar 7, 2013 8:43am EST

March 7 (Reuters) - Colgate-Palmolive Co said it is planning a two-for-one stock split and a 10 percent increase in its dividend,i as the toothpaste maker believes it still has strong growth potential with its new products and a continued global expansion.

Even before Thursday's announcement, shares of Colgate had risen more than 10 percent this year. The shares rose to $116.50 in premarket trading Thursday from Wednesday's closing price of $115.35 on the New York Stock Exchange.

The record date for the stock split is the close of business on April 23, with shares set to be distributed on May 15. The number of shares outstanding will increase from about 468 million to 936 million.

The new quarterly payout of 68 cents per share on a pre-split basis, up from 62 cents previously, will be paid on May 15 to shareholders of record as of April 23, Colgate said.