Church & Dwight Delivers Steady Dividend, EPS Growth


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In 17 of the past 18 years,Church & Dwight ( CHD ) grew earnings 10% or more.

During that same period, the quarterly dividend rose from 6 cents a share to 28 cents. Although the company has raised the payout 17 consecutive years, recent hikes raised its dividend profile.

A year ago, the company increased the dividend 41% -- from 17 cents a share to 24 cents. At the end of January, the company announced a 17% increase -- from 24 cents to 28 cents. The payout at 28 cents a share will begin March 1 to holders of record on Feb. 15.

The annualized dividend yield is 1.9%.

Church & Dwight has a stable of well-known brands: Arm & Hammer baking soda, Nair hair remover, Trojan condoms and Pepsodent toothpaste.

The company's acquisition strategy is to buy companies that are No. 1 or No. 2 in their markets. In October, Church & Dwight completed the acquisition of Avid Health, a maker of gummy vitamins and supplements.

Earnings growth stepped up from 6% to 22% and 30% in recent quarters. Revenue grew 3%, 3% and 11% in the same periods. The Street expects 2013 earnings to grow 14% on an 11% revenue pop.

The five-year EPS Stability Factor is 4 on a gauge that runs from 0 (calm) to 99 (wild).

International accounts for about 18% of revenue. The foreign markets consist of Canada, France, Australia, China, the U.K., Brazil and Mexico.

Drawbacks include the soap and cleaning industry group, which is a laggard. Also, funds lightened their stake in Church & Dwight in Q4.

The stock broke out of a first-stage base earlier this month, clearing a 59.37 buy point. For more on Church & Dwight, see today's New America story.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Investing Ideas

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