Metallic Co/Pd multilayers with equal layer thickness and periods ranging from 5 to 150 Å were deposited using pulsed laser deposition. They have an fcc (111) texture and the diffraction patterns give clear evidence of a modulated period structure. From the period dependence of the in-plane electrical resistivity a diffuse interface between cobalt and palladium of thickness b=6±2 Å has been deduced. Magnetic, magnetoresistance, and Kerr-effect measurements indicate in-plane magnetization. In low fields (B0≤10 mT) the magnetoresistance is highly anisotropic, varying by −2% in the transverse configuration and +1% in the longitudinal configuration due to orbital moment of cobalt in the interface region. The shape of the Kerr-effect major hysteresis loop can be explained by the in-plane component of the anisotropy of the cobalt layers.