Church & Dwight: Muted Return Expectations

Dividend | Stock | Investing | Valuation

The consumer packaged goods industry has historically been an excellent place to look for wealth creation potential. As long as investments are made to keep the strength of the brand name, the business boils down to a quasi-subscription-based service with plenty of recurring revenue.

While Church & Dwight (CHD) doesn't have the same cachet or recognition as some of the larger consumer packaged goods businesses, that doesn't mean that it should be ignored. The business has a rich history of stellar returns as well as returning ample excess cash flow to shareholders over time.

Dividend History

The bulk of my investment capital is invested in companies that have a history of paying and growing their dividend payment over time. That means that I'm primarily invested in well-established businesses that generate plenty of cash flow that can then be returned to shareholders. A lengthy dividend growth streak is not a guarantee that the business is sound; however, I do believe that it helps to get you "fishing in the right waters."

Church Dwight Dividend HistoryImage by author; data source Church & Dwight Investor Relations

According to the CCC list, Church & Dwight is a Dividend Contender with 24 consecutive years of dividend growth. Church & Dwight's dividend record dates back much further though to at least 1976 after a pause in dividend growth in 1995 and 1996.

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