In 17 of the past 18 years,Church & Dwight (
) 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
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
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
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
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