tag:blogger.com,1999:blog-6587699706949333863.post8295963989142360907..comments2024-03-27T23:39:33.499-05:00Comments on Passive Income Pursuit: Church & Dwight (CHD) Dividend Stock AnalysisPassive Income Pursuithttp://www.blogger.com/profile/13947101854482544346noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6587699706949333863.post-67708899341148183512013-12-22T08:18:09.379-06:002013-12-22T08:18:09.379-06:00Chuck,
I hope no one's reusing condoms. Jus...Chuck, <br /><br />I hope no one's reusing condoms. Just thought of that makes me a little sick. The product mix is great and they're slowly growing their brands. The consumer staples sure are great for investors, I love give the razor away sell the blades model. Nothing like consistent repeat customers. Even if you didn't do a in depth look at the financials, you did the most important part which is finding a successful business model. Like WB says, "It's better to buy a great company at a fair price, than a fair company at a great price". <br /><br />As far as the valuation I'm kind of torn on it. Sure, the difference in the long run won't really be that noticeable, but the starting price determines your future returns. If I had an amount set aside specifically to purchase CHD, then yeah I'd probably plop some down, but since I'm still in acquisition mode, then I don't see why I shouldn't purchase companies that I feel have similar growth prospects but a better valuation. <br /><br />Thought I had my age somewhere, but I guess I don't. I'm 29 now and turning 30 in early January so I've still got time on my side, although time is also kind of pressed since I'm trying my best to reach FI no later than 40, hopefully much sooner.<br /><br />Thanks for stopping by Chuck and for your thoughts. It's always great to get feedback from readers to help us all learn.Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-90516103209905856182013-12-22T08:10:32.214-06:002013-12-22T08:10:32.214-06:00Ray,
I probably should have bought some earlier ...Ray, <br /><br />I probably should have bought some earlier this year, but I'm sure something else happened to catch my eye at the time. Those low beta consumer staples companies are great for consistent dividend increases as most of them have their brands established enough to be able to pass on at least inflation costs so you can expect at a minimum to get those kind of raises. Glad to meet another self taught investor and I hope your retirement goes well. I'm hoping to reach early FI and possibly ER in the next few years. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-66879417866494796302013-12-21T16:48:12.336-06:002013-12-21T16:48:12.336-06:00Thanks for your in depth look at CHD. Having been ...Thanks for your in depth look at CHD. Having been a follower of ARM & HAMMER as well as the general mix, I pulled the trigger this summer buying at $59. It is a tad overvalued, but the low beta consumer stable line is quite the investment for recessions<br />which come along at regular intervals. For a retiree, one can sleep well being fairly certain future 10% annual div. increases will deal effectively with inflation. Self taught student of Warren Buffett. RayRaynoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-70970009205315089612013-12-20T20:08:48.445-06:002013-12-20T20:08:48.445-06:00Nice analysis. Back in 2005, I didn't do nearl...Nice analysis. Back in 2005, I didn't do nearly a comprehensive analysis as you have done. While I definitely looked at the financials, what appealed to me was the product mix. I can remember the Arm & Hammer brand all the way back to when I was little and I figured the brand would probably outlive me. I also liked the fact one of their brands is Trojan condoms (a product you can't resuse...at least I hope you don't). When I delved further into their product mix I noticed a similarity. CHD makes/sells stuff you constantly have to replenish. As with the condoms, you don't want to reuse liquid detergent, toothpaste, kitty litter, etc..<br /><br />Based on my "super" in depth analysis, we picked up a few thousand shares. Since then, my wife and I have watched the stock split and the dividend grow exponentially.<br /><br />Sure, the stock might look a bit rich at the moment but how many shares are you looking to purchase? Seriously, so you pay $66.48 (today's closing price) vs $60 and you buy 1000 shares. What's $6,480 in the great scheme of things? Thirty years from now, will you really care?<br /><br />You don't disclose your age in your profile but from reading your background, you sound as if you have one of the key components required to grow your wealth....time.<br /><br />Just my $0.02 worth.<br /><br />Cheers.<br /><br />Chuck from OntarioAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-39131458109085852852013-12-19T10:56:06.223-06:002013-12-19T10:56:06.223-06:00Integrator,
No problem. Love the company and th...Integrator, <br /><br />No problem. Love the company and their brands, but not the current share price. Their power brands are all number one in their respective markets which is a pretty amazing feat. At CHD is expected to grow at a decent clip which kind of justifies the high PE compared to some of the slower growing beasts like PG, CLX, CL. But I don't think the growth is enough to justify the current price. Would love to pick up a mid-cap consumer staples company because they can add that combination of growth plus they already have a solid moat in place which can lead to huge future DG. We'll just have to wait for better prices though.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-17424053426503282692013-12-19T05:25:40.002-06:002013-12-19T05:25:40.002-06:00Thanks for the analysis on CHD. I've recently ...Thanks for the analysis on CHD. I've recently been considering initiating a position in them....love the brand portfolio they have and the stability they provide as a cons staples company. I suspected they were overvalued and needed to wait a little longer before pulling the trigger. Your analysis helps to reinforce this.Integratorhttp://financiallyintegrated.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-6125150686577177052013-12-18T12:27:03.956-06:002013-12-18T12:27:03.956-06:00Bryan,
Yeah, unfortunately a lot of the consumer...Bryan, <br /><br />Yeah, unfortunately a lot of the consumer staples are overvalued. At least CHD is kind of justified as they are expected to have a lot more growth than the behemoths. I'm torn on whether I want rates to rise much from here only because I'd really like to take advantage of the low rates to pick up at least one rental property in 2014. Hopefully 1Q. I think it would add some higher monthly cash flow and some good diversification of income sources. But I'm still looking forward to the shift back to bonds to lighten the demand for consumer staples stocks some. Hopefully we can get some good opportunities to add to some great, consistent dividend payers.Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-24475253974923141412013-12-18T08:31:15.326-06:002013-12-18T08:31:15.326-06:00Another crazy overvalued consumer staples company,...Another crazy overvalued consumer staples company, PIP. Like Clorox, PG, and the others. They will all come down as growth disappoints and the bond money returns to bonds....which I'm hoping will happen when interest rates go up. We'll see. I'm picking up some General Mills in the next couple days, now that they missed their quarter Cheers<br />-BryanFast Weeklyhttp://fastweekly.blogspot.comnoreply@blogger.com