Updated 4/21/25
Church & Dwight Co., Inc. (CHD) has built a dependable business around a portfolio of well-known consumer brands like Arm & Hammer, OxiClean, and TheraBreath. With consistent earnings, disciplined cash flow management, and nearly three decades of uninterrupted dividend growth, it remains a steady player in the household and personal care sector. The stock currently trades around $103, supported by strong free cash flow and a conservative payout ratio.
While its valuation is on the higher side, analysts maintain a consensus price target of $112.59, reflecting modest expected upside. Recent leadership changes, including the upcoming transition to CFO Richard Dierker as CEO, signal a focus on continuity. Backed by stable revenue, a solid balance sheet, and a commitment to long-term shareholder return, Church & Dwight continues to offer investors a foundation of operational strength and strategic clarity.
Recent Events
Church & Dwight wrapped up 2024 on a strong note. Annual revenue hit $6.11 billion, and earnings per share landed at $2.37—good for a 23% jump compared to the previous year. Those are impressive numbers for a consumer staples name operating in a higher-cost, inflation-sensitive environment.
Behind the growth, there’s a quiet story of operational discipline. The company managed to keep costs in check and get more efficient with its supply chain, which helped push operating margins up to 16.2%. It also continued to benefit from both volume growth and modest price increases across several categories.
Even with inflation pressuring costs across the board, CHD managed to boost both its top and bottom lines. That’s a reflection of how sticky its products are—consumers might trade down on luxury, but toothpaste and laundry detergent? Those keep moving.
Interestingly, the stock is trading at a high multiple, with a trailing P/E above 44 and forward P/E just under 29. Still, the market seems comfortable paying a premium for this level of predictability and steady cash generation.
Key Dividend Metrics
📈 Forward Yield: 1.12%
💰 Forward Annual Dividend: $1.18 per share
🔁 Payout Ratio: 47.89%
🕰️ 5-Year Average Yield: 1.13%
📅 Last Dividend Date: March 3, 2025
🧮 Ex-Dividend Date: February 14, 2025
🔧 Dividend Growth Streak: 28 years
🧾 Free Cash Flow Coverage: Strong (FCF: $786M)
Dividend Overview
CHD isn’t about headline-grabbing yields. At just over 1%, the current forward yield won’t excite investors looking for immediate income. But dig a little deeper, and you see what makes this dividend different—it’s built on a foundation of consistency and prudence.
The payout ratio is sitting just below 48%, which tells you the company is paying out less than half of its earnings as dividends. That leaves plenty of room to reinvest in the business, handle debt obligations, and still reward shareholders. It’s a smart, balanced approach that shows up in CHD’s long-term performance.
The company’s balance sheet is solid, with about $964 million in cash and manageable debt levels. The total debt-to-equity ratio is around 55%, which isn’t light, but it’s not aggressive either. The company’s history shows they’re comfortable carrying some debt while maintaining strong creditworthiness.
CHD also tends to be a pretty steady stock. With a beta of 0.55, it doesn’t bounce around wildly with the broader market. That’s another plus for income investors looking to dial down volatility in their portfolio.
Dividend Growth and Safety
Church & Dwight has increased its dividend every year for the past 28 years. That’s not a coincidence—it reflects a steady, measured approach to growth. The five-year dividend growth rate is a little over 6%, which may not seem thrilling, but it’s consistent, and importantly, it’s not forced.
A big reason for that consistency is strong free cash flow. Over the last year, the company generated about $1.16 billion in operating cash flow and nearly $786 million in levered free cash flow. That’s more than enough to comfortably cover dividend payments with room to spare.
From a safety standpoint, that kind of cash flow is gold. Even if earnings take a short-term hit or consumer trends shift temporarily, CHD has the financial flexibility to keep its dividend on track.
Valuation is on the high side when you look at traditional metrics like P/E and PEG, but investors aren’t buying CHD for explosive growth. They’re buying it for the ability to hold a reliable business that generates steady income and quietly compounds over time.
With the current share price around $103, the stock is closer to its 52-week low than its high. For dividend-focused investors, that may be a more attractive entry point to lock in a slightly better yield-on-cost, especially if you’re planning to hold for the long haul.
Church & Dwight isn’t trying to be flashy. And in this case, that’s exactly what makes it a worthwhile consideration for dividend investors who appreciate steady hands, dependable income, and brands that don’t go out of style.
Cash Flow Statement
Church & Dwight’s trailing twelve-month (TTM) cash flow statement reflects a business with stable operations and disciplined financial management. Operating cash flow reached $1.16 billion, continuing its upward trajectory from prior years and showing strong earnings conversion. Capital expenditures remained moderate at $179.8 million, which allowed the company to generate a healthy $976.4 million in free cash flow—up from $807.1 million the year before. That level of free cash flow gives CHD significant flexibility to support its dividend, reduce debt, and reinvest in core brands.
On the investing side, outflows were relatively modest at $183.3 million, well below previous years when CHD had heavier acquisition-related spending. Financing cash flow came in at -$343.4 million, driven mainly by debt repayments totaling $208.2 million. Unlike previous years, there was no new debt issuance or share repurchase activity noted. The end result was a sizable boost to the company’s cash position, ending the period with $964.1 million—nearly triple its 2023 year-end balance. All told, Church & Dwight’s cash flow profile in the TTM shows a company that’s generating plenty of cash and using it wisely.
Analyst Ratings
📈 Church & Dwight (CHD) has recently seen a shift in analyst sentiment, with a few upgrades reflecting renewed confidence in the company’s defensive profile. One of the notable moves came from a major Wall Street firm that upgraded the stock from “Neutral” to “Buy.” The reasoning? CHD continues to deliver stable performance in a choppy consumer landscape, bolstered by brand loyalty and pricing power across its core product lines. The upgrade was paired with a new price target of $125, up from $112, highlighting expectations for steady earnings and margin expansion.
🔻 On the flip side, there are still analysts leaning more cautiously. A couple of firms maintained “Underweight” ratings while trimming their price targets—one bringing it down to $94, and another adjusting it to $98. These lower targets point to concerns around valuation, especially given CHD’s higher-than-average P/E ratio in a sector that typically sees tighter multiples.
🎯 The current analyst consensus price target stands at $112.59. That midpoint is based on a range that stretches from a bearish $94 up to a bullish $126. The average target suggests a bit of upside from current levels, but it’s clear analysts are split—some focusing on the strength of cash flows, others on the premium being paid for safety.
Earning Report Summary
Church & Dwight wrapped up 2024 on a strong note, showing once again why it’s considered a reliable performer in the consumer staples space. The company delivered better-than-expected results in the fourth quarter, with both sales and earnings moving in the right direction. This wasn’t just about higher prices—volume was a big part of the story, which is exactly what you want to see when gauging the health of a brand-driven business.
Solid Top-Line Growth
In the fourth quarter, net sales came in at $1.58 billion, up 3.5% from the same period a year ago. More importantly, organic sales grew 4.2%, meaning the gains were driven by real demand rather than acquisitions or currency moves. That kind of organic growth is impressive in a market that’s been anything but predictable. For the full year, total sales hit $6.1 billion, a 4.1% increase, while organic growth landed at 4.6%.
Healthy Margins and Cash Flow
Margins also saw some improvement. Adjusted gross margin expanded by 110 basis points, helped by productivity gains and stronger contributions from newer, higher-margin product lines. Full-year adjusted earnings per share reached $3.44, which is an 8.5% bump from the prior year. Cash flow was a standout too, with $1.16 billion in operating cash generated during the year. That kind of financial strength gives the company room to invest in growth while also returning value to shareholders.
Leadership’s Take
CEO Matthew Farrell struck an upbeat tone during the company’s update, pointing to the power of the company’s brands and the success of recent product launches. He highlighted that volume was the main engine of growth this past year and said the team expects that trend to continue in 2025. Marketing spend also increased, not just for the sake of it, but in ways that clearly supported consumption and helped gain market share. Farrell also called out e-commerce as a bright spot—online sales now make up over 21% of their total consumer business.
What’s Next
Looking ahead, Church & Dwight is leaning into innovation to drive further gains. Among the upcoming launches is a fragrance-free version of its ARM & HAMMER Power Sheets laundry detergent, aimed at appealing to more health-conscious and sensitive-skin customers. The company sees this kind of targeted product development as key to staying ahead in the market while keeping the brand lineup fresh and relevant.
All in all, Church & Dwight ended the year with solid footing and a clear path forward. The focus remains on building out its brand power, keeping margins healthy, and delivering steady, reliable growth—just the way long-term investors like it.
Chart Analysis
Price Movement and Trend
CHD has seen a fairly eventful year, marked by phases of strength and short-term weakness. The price action shows a steady climb from last spring into the fall, with a notable rally into late November. However, after peaking near the $115–116 level, the stock has experienced a pullback, giving up some of those gains and settling closer to the $103 mark.
The 50-day moving average (red line) turned down recently, signaling some near-term softness. It had spent much of the year above the 200-day moving average (blue line), but that gap has narrowed significantly. The two averages are converging, hinting at a possible shift in trend if the stock doesn’t reclaim some upward momentum soon. That said, the price still hovers around the 200-day line, which has continued its gradual climb, suggesting the broader long-term trend hasn’t been broken just yet.
Volume Behavior
Volume has remained relatively consistent, with a few sharp spikes that corresponded to earnings and possibly other corporate updates. There’s no obvious accumulation or distribution phase based on volume alone—trading has stayed fairly balanced without dramatic surges or sell-offs.
Momentum and RSI
The relative strength index (RSI) at the bottom of the chart shows multiple dips below 30 and rallies that approached overbought levels near 70. In recent weeks, RSI has been declining again, slipping toward the lower end of the range. This suggests the stock may be entering a period of oversold conditions, or at least one of limited buying interest in the short term.
The broader takeaway here is that while momentum has cooled, there’s no major breakdown. The stock has held up near a long-term support area and hasn’t broken sharply below the 200-day moving average. The cooling RSI and mild pullback could present an opportunity if the longer-term trend stays intact.
CHD’s chart tells the story of a stock that’s taken a breather after a solid run, but one that still sits within a range that has historically provided a base for renewed strength. The moving averages and price structure continue to lean toward stability rather than breakdown, even if short-term momentum has clearly faded.
Management Team
Church & Dwight is currently in the middle of a leadership transition that signals continuity more than change. Matthew Farrell, who has led the company as CEO since 2016, is stepping down in March 2025. He’ll remain as Chairman to help with the transition, which reflects a thoughtful approach rather than a sudden shift. The reins are being passed to Richard Dierker, the company’s long-standing CFO and a 15-year veteran at Church & Dwight. His deep familiarity with the business, both operationally and financially, brings a level of confidence to the shift.
The broader executive team is made up of leaders with years of experience inside and outside the company. Patrick de Maynadier continues as Executive VP and General Counsel, Carlos Linares oversees global R&D efforts, and Britta Bomhard leads marketing strategy. Their combined track record speaks to a management group that understands how to guide a consumer brands company through both predictable and more volatile environments.
Valuation and Stock Performance
As of late April 2025, CHD is trading just under $103. While it’s off its recent highs near $116, the current price still represents a stock that’s held up relatively well over the past year. The trailing P/E ratio is around 44, which is high compared to the broader sector. That kind of multiple implies investors are paying a premium for consistency and brand strength.
The PEG ratio sits above 3, suggesting that while earnings are expected to grow, that growth is already priced in. Still, CHD tends to carry a premium because of its predictable cash flow and ability to weather economic downturns. It’s not a high-flyer, but it doesn’t usually get crushed in rough markets either.
The 12-month analyst consensus price target is $112.59. That’s not far from where the stock is currently trading, which means most analysts see only modest upside from here. The stock’s beta of 0.55 supports its reputation as a lower-volatility name, offering a smoother ride during market turbulence.
Risks and Considerations
There are a few things to keep in mind when looking at CHD through a long-term lens. First, the company leans heavily on its U.S. business, so it doesn’t have the same global diversification as some of its larger peers. That means changes in U.S. consumer behavior, retail trends, or regulatory policy can have a bigger impact.
Competition is always a factor in the household and personal care space. CHD’s success depends on both holding onto its market share and continuing to innovate. A misstep with a new product launch or a quality issue, like the recent recall involving TheraBreath, can quickly dent both financials and trust.
The premium valuation also means the market has high expectations. If sales or earnings come in light—even just slightly—the stock could be punished more than a cheaper name. There’s also the broader issue of rising input costs and ongoing supply chain pressures, which have affected nearly every player in the consumer staples space.
Final Thoughts
Church & Dwight continues to do what it’s always done—grow steadily, manage its brands well, and deliver strong cash flow. The leadership transition to Richard Dierker looks like a move to preserve what’s working rather than to shake things up. That kind of stability is rare and often overlooked.
The valuation is a bit rich, and growth expectations are moderate, but the underlying business remains dependable. CHD may not be exciting, but that’s part of its appeal. It’s the kind of company that just keeps moving forward, even when the market doesn’t. For investors who value predictability, sound management, and a steady hand through economic ups and downs, CHD continues to stand out.