Is Church & Dwight Co. Inc. (NYSE:CHD) a buy for dividend investors?
Church & Dwight (NYSE:CHD) may not be a household name, but you've probably heard of many of the company's brands: ARM & HAMMER, Trojan, First Response, Nair, Spinbrush, OxiClean , Orajel, Vitafusion, WaterPik and ZICAM.
MarketBeat.com - MarketBeatIf you're already familiar with some of the company's top brands, you might be one step closer to a serious investment. Let's take a look at the background of Church & Dwight, what to know before investing (including why you should consider the company and why you might want to avoid it) and whether the company is suitable to your specific investment needs. Let's start.
About Church & Dwight Co. Inc.Church & Dwight Co. Inc., a household products manufacturer headquartered in Ewing, New Jersey, is best known for ARM & HAMMER Baking Soda and the wide variety of products from that line, including laundry detergent and toothpaste.
The company began in the mid-1800s. In 1846, Dr. Austin Church and John Dwight, brothers-in-law, introduced baking soda (baking soda) for commercial distribution, known today as the ARM & HAMMER name. Their first plant started in Dwight's kitchen and was packed in paper bags.
In the 1980s and 1990s, ARM & HAMMER introduced the first detergent with baking soda, powdered and liquid laundry detergents, then created toothpaste, carpet deodorizer and cat litter.
In the early 2000s, Church & Dwight acquired Carter Wallace's consumer business, which included personal care brands Trojan, First Response, Nair and Arrid.
In 2006, the company expanded its household brand portfolio by acquiring Orange Glo International and OxiClean, Kaboom bathroom cleaners and Orange Glo household cleaning products. She also bought Orajel in 2008, Batiste Dry Shampoo in 2010 and Simply Saline, a nasal hygiene brand. It also acquired Feline Pine, a brand of cat litter.
The company also acquired Agro BioSciences in 2017 and Microbial Terroir, a proprietary microbial solutions platform, and purchased Water Pik Inc. In 2019, it acquired Flawless, which offers a line of electric hair removal products.
In the first quarter of 2022, net sales increased 4.7% to $1,297.2 million. Organic sales increased 2.7% and prices increased 7.8%, offsetting a volume decline of -5.1% due to supply chain disruption and price elasticity. First quarter 2022 EPS was $0.83, down 5.7% from 2021.
Reasons to Consider Investing in Church & Dwight StockWhy would you buy Church & Dwight stock? Let's take a look:
Strong Consumer Demand: The company continues to experience strong consumer demand due to its seemingly indestructible (or at least, recession-proof) portfolio of well-cultivated brands. One of the reasons for its success is its ability to bring value to consumers, especially by offering brands of laundry detergents at a very favorable price compared to the brands of Procter & Gamble, for example. When people are looking for a cheaper alternative, Church & Dwight can fill that need. Consistent Dividend Increases: Church & Dwight has a dividend yield of 1.13%, an annual dividend of $1.05, a dividend payout ratio of 32.21% and has offered a consistent dividend increase over the last 27 years. Church & Dwight pays 32.2% of its earnings as a dividend, indicating a healthy payout ratio. The company has no trouble covering its dividend payments and would be able to do so on an ongoing basis. The company also has strong institutional ownership of its shares. Cash Flow: Because cash flow is important when evaluating a dividend, Church & Dwight's free cash flow margins have steadily increased over the past decade. The company's average free cash flow margin is 16.4% and the five-year average is 17.4%. Listening to consumers: Church & Dwight focused on four core brands: ARM & HAMMER, OxiClean, Trojan and vitamins (primarily for kids, including Vitafusion and Lil' Critters). During the pandemic, consumers have formed new confinement habits, such as the need to feel presentable for Zoom calls and other in-home solutions (encouraging the use of dry shampoo, waxing and hair removal at home and the beauty regimes at home).Learn more: Top Growth and Dividend Stocks
Reasons to Avoid Church & Dwight StockWhy mi...
Church & Dwight (NYSE:CHD) may not be a household name, but you've probably heard of many of the company's brands: ARM & HAMMER, Trojan, First Response, Nair, Spinbrush, OxiClean , Orajel, Vitafusion, WaterPik and ZICAM.
MarketBeat.com - MarketBeatIf you're already familiar with some of the company's top brands, you might be one step closer to a serious investment. Let's take a look at the background of Church & Dwight, what to know before investing (including why you should consider the company and why you might want to avoid it) and whether the company is suitable to your specific investment needs. Let's start.
About Church & Dwight Co. Inc.Church & Dwight Co. Inc., a household products manufacturer headquartered in Ewing, New Jersey, is best known for ARM & HAMMER Baking Soda and the wide variety of products from that line, including laundry detergent and toothpaste.
The company began in the mid-1800s. In 1846, Dr. Austin Church and John Dwight, brothers-in-law, introduced baking soda (baking soda) for commercial distribution, known today as the ARM & HAMMER name. Their first plant started in Dwight's kitchen and was packed in paper bags.
In the 1980s and 1990s, ARM & HAMMER introduced the first detergent with baking soda, powdered and liquid laundry detergents, then created toothpaste, carpet deodorizer and cat litter.
In the early 2000s, Church & Dwight acquired Carter Wallace's consumer business, which included personal care brands Trojan, First Response, Nair and Arrid.
In 2006, the company expanded its household brand portfolio by acquiring Orange Glo International and OxiClean, Kaboom bathroom cleaners and Orange Glo household cleaning products. She also bought Orajel in 2008, Batiste Dry Shampoo in 2010 and Simply Saline, a nasal hygiene brand. It also acquired Feline Pine, a brand of cat litter.
The company also acquired Agro BioSciences in 2017 and Microbial Terroir, a proprietary microbial solutions platform, and purchased Water Pik Inc. In 2019, it acquired Flawless, which offers a line of electric hair removal products.
In the first quarter of 2022, net sales increased 4.7% to $1,297.2 million. Organic sales increased 2.7% and prices increased 7.8%, offsetting a volume decline of -5.1% due to supply chain disruption and price elasticity. First quarter 2022 EPS was $0.83, down 5.7% from 2021.
Reasons to Consider Investing in Church & Dwight StockWhy would you buy Church & Dwight stock? Let's take a look:
Strong Consumer Demand: The company continues to experience strong consumer demand due to its seemingly indestructible (or at least, recession-proof) portfolio of well-cultivated brands. One of the reasons for its success is its ability to bring value to consumers, especially by offering brands of laundry detergents at a very favorable price compared to the brands of Procter & Gamble, for example. When people are looking for a cheaper alternative, Church & Dwight can fill that need. Consistent Dividend Increases: Church & Dwight has a dividend yield of 1.13%, an annual dividend of $1.05, a dividend payout ratio of 32.21% and has offered a consistent dividend increase over the last 27 years. Church & Dwight pays 32.2% of its earnings as a dividend, indicating a healthy payout ratio. The company has no trouble covering its dividend payments and would be able to do so on an ongoing basis. The company also has strong institutional ownership of its shares. Cash Flow: Because cash flow is important when evaluating a dividend, Church & Dwight's free cash flow margins have steadily increased over the past decade. The company's average free cash flow margin is 16.4% and the five-year average is 17.4%. Listening to consumers: Church & Dwight focused on four core brands: ARM & HAMMER, OxiClean, Trojan and vitamins (primarily for kids, including Vitafusion and Lil' Critters). During the pandemic, consumers have formed new confinement habits, such as the need to feel presentable for Zoom calls and other in-home solutions (encouraging the use of dry shampoo, waxing and hair removal at home and the beauty regimes at home).Learn more: Top Growth and Dividend Stocks
Reasons to Avoid Church & Dwight StockWhy mi...
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