June 01, 2025 a 07:31 am
CHD: Dividend Analysis - Church & Dwight Co., Inc.
The dividend profile of Church & Dwight Co., Inc. showcases a stable and enduring commitment to returning capital to shareholders, with a consistent dividend history. Despite a modest yield, the company's strong dividend growth and lengthy track record of payments indicate its potential as a reliable choice for dividend-focused investors.
📊 Overview
Church & Dwight operates within a sector characterized by steady demand. The dividend yield, while not excessively high, reflects a conservatively managed payout strategy aimed at sustainability. The company's uninterrupted dividend history of 41 years exemplifies its dedication to shareholder value.
| Metric | Value |
|---|---|
| Sector | Consumer Goods |
| Dividend yield | 1.22% |
| Current dividend per share | 1.12 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
🗣️ Dividend History
Examining the dividend history provides insights into the company's ability to sustain its financial commitments. The absence of dividend cuts over an extended period reinforces confidence in the company's operational stability and financial health.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.590 |
| 2024 | 1.135 |
| 2023 | 1.090 |
| 2022 | 1.050 |
| 2021 | 1.010 |
📈 Dividend Growth
Growth in dividends is a positive indicator of the company's profitability and its management's confidence in future earnings. Consistent growth over multiple years suggests a robust business model and predictable cash flows.
| Time | Growth |
|---|---|
| 3 years | 3.97% |
| 5 years | 4.52% |
The average dividend growth is 4.52% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a crucial metric that evaluates the sustainability of a company's dividend payments relative to its earnings. Church & Dwight's payout ratios suggest a balanced approach, where EPS and free cash flow support dividend commitments without overextension.
| Key figure | Ratio |
|---|---|
| EPS-based | 47.72% |
| Free cash flow-based | 29.74% |
An EPS payout ratio of 47.72% and a free cash flow payout ratio of 29.74% indicate that dividends are well-covered, mitigating risks associated with potential earnings volatility.
💰 Cashflow & Capital Efficiency
Cash flow and capital efficiency metrics present a snapshot of the company's operational effectiveness and resource allocation strategies. These figures highlight Church & Dwight's ability to generate sustainable cash flows to support its business operations and investment activities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.78% | 3.49% | 3.61% |
| Earnings Yield | 2.26% | 3.26% | 2.11% |
| CAPEX to Operating Cash Flow | 15.55% | 21.69% | 20.20% |
| Stock-based Compensation to Revenue | 0.97% | 1.08% | 0.60% |
| Free Cash Flow / Operating Cash Flow Ratio | 84.45% | 78.31% | 79.80% |
Church & Dwight exhibits stable cash flow generation and prudent capital investment practices, with a positive free cash flow to operating cash flow ratio, reflecting operational efficiency.
⚖️ Balance Sheet & Leverage Analysis
Balance sheet and leverage metrics reveal the financial structure and risk exposure of a company. Church & Dwight's conservative debt-to-equity levels reflect a solid capitalization strategy.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.51 | 0.68 | 0.77 |
| Debt-to-Assets | 0.25 | 0.30 | 0.32 |
| Debt-to-Capital | 0.34 | 0.40 | 0.43 |
| Net Debt to EBITDA | 1.17 | 1.73 | 2.91 |
| Current Ratio | 1.70 | 1.08 | 1.18 |
| Quick Ratio | 1.24 | 0.64 | 0.63 |
| Financial Leverage | 2.04 | 2.22 | 2.39 |
Relatively low leverage levels and healthy current ratios highlight the company's liquidity strength and manageable debt levels, providing a cushion against economic uncertainties.
🏆 Fundamental Strength & Profitability
Key performance indicators such as margins and returns showcase the company's ability to generate profit and efficiently utilize its resources.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.42% | 19.60% | 11.86% |
| Return on Assets | 6.59% | 8.82% | 4.96% |
| Net Margin | 9.58% | 12.88% | 7.70% |
| EBIT Margin | 13.94% | 18.38% | 11.40% |
| EBITDA Margin | 17.29% | 22.21% | 15.37% |
| Gross Margin | 45.69% | 44.11% | 41.86% |
| R&D to Revenue | 0.54% | 2.09% | 2.05% |
Strong margins and returns reflect efficient operations and competitive advantages in the market, bolstering investor confidence in long-term profitability.
📉 Price Development
🎯 Dividend Scoring System
| Criterion | Score | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 32 out of 40
⭐ Rating
Church & Dwight Co., Inc. demonstrates strong financial health with a solid dividend history, moderate growth, and sound payout ratios. Its strategic approach to maintaining a balance between growth and shareholder returns makes it a compelling choice for long-term dividend investors. Recommended as a stable addition for income-focused portfolios with growth potential.