RBC Capital Markets has upgraded Church & Dwight (NYSE: CHD) from “Sector Perform” to “Outperform,” lifting its price target to $114. This move comes after a stretch of underwhelming performance blamed on inventory overhangs, decelerated category growth, and lingering tariff pressures. Following recent meetings with the CEO and the newly appointed CFO, RBC emerged more confident that the company’s current guidance fully captures those headwinds.
🟢 The catalyst behind this shift? Church & Dwight’s $700 million acquisition of Touchland, a trendy and fast-growing hand sanitizer brand. With an additional $180 million tied to hitting 2025 revenue targets, this deal elevates Touchland to become the company’s eighth official “power brand.” Though the acquisition is expected to be EPS-neutral for 2025 due to integration costs, it strengthens Church & Dwight’s long-term portfolio and growth strategy.
🟢 Even as the company trims its 2025 outlook—citing destocking trends, sluggish category dynamics, and external trade-related costs—market share is rising in key verticals like laundry detergent and skincare. Gains are volume-driven, not price-pumped, indicating real consumer traction. Church & Dwight’s margin story is improving too, with productivity initiatives and smarter marketing spend delivering tangible upside.
📈 Dividend Fundamentals
🟢 Church & Dwight has built a dividend reputation few can match. The current dividend stands at $0.295 per share quarterly, or $1.16 annually, yielding around 1.17%. With a payout ratio of 49.1%, the company strikes a healthy balance between rewarding shareholders and reinvesting in growth.
While the yield trails the sector average, the consistency and reliability of CHD’s dividend are core attractions. Combined with an upgraded outlook and a high-quality acquisition in Touchland, Church & Dwight is regaining investor favor as a stable defensive play with long-term upside.