Church & Dwight (CHD): A Dividend Growth Powerhouse with Strong Buy Potential

Church & Dwight Co., Inc. (CHD) has long been a cornerstone of the dividend growth investor’s portfolio, boasting a remarkable 29-year streak of consecutive annual dividend increases. As of July 30, 2025, the company announced a new quarterly dividend of $0.30 per share, marking a 1.8% increase from the prior year’s $0.295 [1]. This trajectory underscores CHD’s commitment to rewarding shareholders, with a 10-year dividend CAGR of 6.89% and a forward yield of 1.27% [3]. For income-focused investors, CHD’s consistency and modest valuation metrics make it a compelling candidate for long-term growth.

Financial Resilience: A Foundation for Sustainable Dividends

CHD’s ability to sustain dividend growth is underpinned by its robust financial metrics. The company maintains a conservative debt-to-equity ratio of 0.49, reflecting prudent capital management and a low-risk profile [3]. Operating cash flow has grown by 5.2% annually, with Q3 2025 projections of $1.05 billion despite inflationary pressures and tariff costs [2]. This cash flow resilience ensures the company can weather macroeconomic headwinds while maintaining its dividend payout.

Moreover, CHD’s revenue growth, though modest at 1-2% for Q3 2025, is supported by a diversified product portfolio and strategic acquisitions [3]. The company’s market share in the Consumer Staples sector stands at 2.36%, with a net margin of 15.01%—significantly higher than its peers [4]. While CHD’s revenue declined 2.42% year-on-year in Q1 2025, its performance outpaced competitors, who saw a 1.28% drop [4]. This relative strength in profitability positions CHD to continue funding dividend increases even in challenging environments.

A Strong Buy for Dividend Growth Investors

CHD’s investment appeal is further reinforced by its Zacks Growth Style Score of A and a VGM Score of B, indicating a favorable mix of value, growth, and momentum [3]. The company is expected to deliver 1.2% year-over-year earnings growth in the current fiscal year, a modest but sustainable rate for a mature consumer staples player [3]. For dividend-focused investors, this combination of earnings stability and a high-growth dividend streak makes CHD a rare gem in today’s market.

Conclusion

Church & Dwight’s 29-year dividend growth streak, coupled with its strong balance sheet and resilient cash flow, solidifies its status as a dividend growth powerhouse. While its market share faces slight headwinds, its superior profitability and strategic adaptability position it to maintain—and potentially extend—its dividend trajectory. For investors seeking a blend of income security and long-term capital appreciation, CHD offers a compelling case for a “Strong Buy.”

**Source:[1] Dividend History - Church & Dwight Co. (CHD), [https://www.zacks.com/stock/research/CHD/dividend-history][2] Church & Dwight Co., Inc. - Cash Flow, [https://trendlyne.com/fundamentals/cash-flow/1403193/CHD/church-dwight-co-inc/][3] Church & Dwight (CHD) is a Top-Ranked Growth Stock, [https://www.nasdaq.com/articles/church-dwight-chd-top-ranked-growth-stock-should-you-buy][4] Church And Dwight Co Inc Comparisons to its Competitors, [https://csimarket.com/stocks/compet_glance.php?code=CHD]