December 11, 2025 a 03:31 am
CHD: Dividend Analysis - Church & Dwight Co., Inc.
Church & Dwight Co., Inc. is a stable entity in the consumer goods sector, known for its consistent dividend history spanning decades. The company has shown resilience with a robust market capitalization of $20.36 billion and steady dividend payouts. With a reasonable dividend yield of 1.40% and healthy growth in dividend distribution, Church & Dwight reflects an attractive investment profile for dividend-seeking investors.
📊 Overview
Church & Dwight operates in the Consumer Goods sector. The company offers a dividend yield of 1.40%, with a current dividend per share of $1.12. It has an impressive dividend payment history of 41 years, with the last cut or suspension occurring in 1995.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut/Suspension |
|---|---|---|---|---|
| Consumer Goods | 1.40% | $1.12 USD | 41 years | 1995 |
🗣️ Dividend History
The strong and uninterrupted dividend history over 41 years underscores Church & Dwight's commitment to returning value to its shareholders. This consistency signifies stability and can be appealing to long-term investors focused on dividend income.
| Year | Dividend per Share |
|---|---|
| 2025 | $1.18 |
| 2024 | $1.135 |
| 2023 | $1.09 |
| 2022 | $1.05 |
| 2021 | $1.01 |
📈 Dividend Growth
Sustainable dividend growth is indicative of a healthy financial position. Church & Dwight has experienced a 3-year dividend growth rate of 3.97% and a 5-year rate of 4.52%. This growth is integral for income-oriented investors looking to preserve purchasing power.
| 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
Payout ratios provide insights into dividend sustainability. With an EPS-based payout ratio of 35% and a free cash flow ratio of 27%, Church & Dwight maintains a balanced approach, indicating sufficient earnings and cash supports for future dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 35% |
| Free cash flow-based | 27% |
These payout ratios demonstrate a strategically managed dividend policy, ensuring sustainability and growth potential.
📉 Cashflow & Capital Efficiency
Capital efficiency and effective cash flow management are imperative for long-term profitability. Multiple metrics illustrate a sound balance between generating and utilizing cash:
| 2024 | 2023 | 2022 |
|---|---|---|
| FCF Yield: 3.77% | FCF Yield: 3.49% | FCF Yield: 3.61% |
| Earnings Yield: 2.26% | Earnings Yield: 3.26% | Earnings Yield: 2.11% |
| CAPEX/Op. Cash Flow: 15.55% | CAPEX/Op. Cash Flow: 21.69% | CAPEX/Op. Cash Flow: 20.20% |
| Stock Comp./Revenue: 0.97% | Stock Comp./Revenue: 1.08% | Stock Comp./Revenue: 0.60% |
| FCF/O. Cash Flow: 84.45% | FCF/O. Cash Flow: 78.31% | FCF/O. Cash Flow: 79.80% |
| Return on Invested Capital: 8.22% | Return on Invested Capital: 11.20% | Return on Invested Capital: 6.51% |
These figures portray efficient cash flow utilization, maintaining sufficient reserves to handle operational expenses and promote capital growth.
⚠️ Balance Sheet & Leverage Analysis
Assessing the balance sheet reveals insights into a firm's financial stability and leverage. Here, we observe sound management over debt obligations:
| 2024 | 2023 | 2022 |
|---|---|---|
| Debt-to-Equity: 0.55 | Debt-to-Equity: 0.68 | Debt-to-Equity: 0.82 |
| Debt-to-Assets: 0.27 | Debt-to-Assets: 0.30 | Debt-to-Assets: 0.34 |
| Debt-to-Capital: 0.35 | Debt-to-Capital: 0.40 | Debt-to-Capital: 0.45 |
| Net Debt to EBITDA: 1.32 | Net Debt to EBITDA: 1.73 | Net Debt to EBITDA: 3.10 |
| Current Ratio: 1.70 | Current Ratio: 1.08 | Current Ratio: 1.18 |
| Quick Ratio: 1.24 | Quick Ratio: 0.64 | Quick Ratio: 0.63 |
| Financial Leverage: 2.04 | Financial Leverage: 2.22 | Financial Leverage: 2.39 |
The leverage figures indicate controlled use of debt with improving liquidity ratios, contributing to the firm's fiscal health and operational resilience.
✅ Fundamental Strength & Profitability
Examining profitability measures offers insight into efficient resource utilization and potential returns:
| 2024 | 2023 | 2022 |
|---|---|---|
| ROE: 13.42% | ROE: 19.60% | ROE: 11.86% |
| ROA: 6.59% | ROA: 8.82% | ROA: 4.96% |
| Net Margin: 9.58% | Net Margin: 12.88% | Net Margin: 7.70% |
| EBIT Margin: 13.94% | EBIT Margin: 18.38% | EBIT Margin: 11.40% |
| EBITDA Margin: 17.85% | EBITDA Margin: 22.21% | EBITDA Margin: 15.48% |
| Gross Margin: 45.69% | Gross Margin: 44.11% | Gross Margin: 41.86% |
| R&D to Revenue: 2.29% | R&D to Revenue: 0.00% | R&D to Revenue: 0.00% |
These performance indicators showcase the firm's capability to harness its assets effectively, delivering consistent returns and maintaining robust profit margins.
📈 Price Development
🗳️ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
🔍 Rating
Church & Dwight Co., Inc. demonstrates a reliable dividend performance coupled with solid financial health. The company's balance sheet reflects prudent fiscal management, ensuring continuous dividend payouts and long-term growth. Investors seeking stable dividend income may find Church & Dwight an appealing addition to their portfolio, with an overall recommendation to be cautiously optimistic given the moderate growth expectations.