If you are interested in cashing in on Church & Dwight Co Inc.’s (NYSE:CHD) upcoming dividend of $0.22 per share, you only have 3 days left to buy the shares before its ex-dividend date, 14 May 2018, in time for dividends payable on the 01 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Church & Dwight’s latest financial data to analyse its dividend attributes. See our latest analysis for Church & Dwight
5 questions I ask before picking a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Is it paying an annual yield above 75% of dividend payers?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has dividend per share risen in the past couple of years?
- Is it able to pay the current rate of dividends from its earnings?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Church & Dwight fare?
The current trailing twelve-month payout ratio for the stock is 25.40%, which means that the dividend is covered by earnings. Going forward, analysts expect CHD’s payout to increase to 36.01% of its earnings, which leads to a dividend yield of around 1.96%. However, EPS is forecasted to fall to $2.3 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. CHD has increased its DPS from $0.08 to $0.87 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes CHD a true dividend rockstar. Relative to peers, Church & Dwight produces a yield of 1.82%, which is on the low-side for Household Products stocks.
Keeping in mind the dividend characteristics above, Church & Dwight is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three key aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CHD’s future growth? Take a look at our free research report of analyst consensus for CHD’s outlook.
- Valuation: What is CHD worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether CHD is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.