My recent Church & Dwight (CHD) – A Dividend Aristocrat guest post at Dividend Power is based on Q1 2021 results and FY2021 guidance.
A Dividend Aristocrat is a component of the S&P 500 Index with at least 25 consecutive years of dividend increases.
On January 29, 2021, CHD announced an increase in its quarterly dividend thus marking the 25th consecutive year in which it has increased the dividend.
CHD has paid a regular consecutive quarterly dividend for 120 years and is one of the few stocks paying a dividend for 100+ years. It was not until recently, however, that it became a Dividend Aristocrat.
CHD is facing input pricing headwinds but the company was founded in 1846 and this is not the first time CHD has had to overcome headwinds.
Church & Dwight (CHD) – A Dividend Aristocrat - Final Thoughts
In early 2005 I initiated a position in CHD; my April 2021 holdings review reflects it as my 3rd largest holding.
The current valuation is not a bargain. However, very rarely have shares been a bargain in the years during which I have been a CHD shareholder. A mid to upper 20s P/E based on GAAP earnings is typically what you can expect from CHD.
Regrettably, so many companies are currently overvalued but I think a broad market correction WILL occur at some point. I intend to acquire additional CHD shares but am applying the first 2 of Charlie Munger’s 13 Personal Attributes To Improve Investment Success....patience and discipline.
Stay safe. Stay focused.
I wish you much success on your journey to financial freedom.
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long CHD.
Disclaimer: I do not know your individual circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your own research and due diligence. Consult your financial advisor about your specific situation.