Church & Dwight: A Stock You Should Watch

Church & Dwight

Technology and growth stocks remain under fire this week. The Nasdaq 100 lost more than 2% earlier in the week. It’s trading just above the correction low of the previous week.

The overriding upward trend is still intact. In the short term, however, the situation remains shaky. Even though I expect the selling pressure to ease soon, it’s certainly not a bad idea to diversify your portfolio. In case you have a relatively strong weighting in the technology sector, today I would like to introduce you to a defensive stock that may be of interest to you.

I’m talking about Church & Dwight (CHD). The stock of the American consumer goods manufacturer has been moving in a steady upward trend for many years. What’s truly impressive is the consistency with which the share price has moved upward. The last calendar year the stock closed with a loss was 2005, and Church & Dwight’s stock has delivered gains every year since. Even in 2008, the year of the financial crisis.

Church & Dwight: Everyday Products Drive Steady Growth

Founded in 1846 and based in Ewing, New Jersey, Church & Dwight is a consumer goods company which produces everything from toothpaste to pet foods. It’s perhaps best known as the owner of the Arm & Hammer and OxiClean brands. 

With products for everyday use, Church & Dwight has an extremely crisis-proof business model and has thus been on a growth course for many years. Over the past five years, the group has increased sales by an average of 8% per year. Earnings per share have risen by an average of 15%.

Church & Dwight Has Been Paying a Dividend For More Than a Century

Not only are sales and profits growing steadily, but so is the dividend. The company has always paid its shareholders a dividend since 1901. For 24 years now, the payout has been increased every year.

Even though the dividend yield is currently only 1.0%, the stock is interesting for you even if you value steady distributions. This is because Church & Dwight is an extremely reliable dividend payer. You can assume with a high degree of probability that the company will continue to raise the payout in the coming years.

Trend Signal Suggests Further Share Price Increases

Chart technology gives the green light for a continuation of the long-term upward trend. In a shaky overall market, the share reached a new all-time high earlier this week, providing a strong trend signal.

After breaking out of a prolonged sideways movement to new highs, the way is clear for further price increases. Over the next few months, prices around $125 are a realistic target. If you are looking for a defensive reinforcement for your portfolio, you should definitely take a closer look at the Church & Dwight share.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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