Another Great but Boring Business

Here is another company that sells the basics that each household needs in good times and bad.

Church & Dwight (CHD)

This company does not have exciting products or exploding growth but they do simple things every day that adds to shareholder value. Church & Dwight is a $20 billion household product giant owning famous brands such as OxiClean and Arm & Hammer. Individuals and businesses always need cleaning supplies so the demand for CHD's products is very inelastic (in other words sticky). With the increased need to sanitize more surfaces the demand has rising while the economy is in a recession as seen by the recent quarter 11.5% bump in sales.

Shares trade with less volatility than the overall market and are once again trading at all time highs. The virus should have a sustained increase in product sales for the foreseeable future after which sales will continue to grow at normal organic rates. This growth should lead to higher stock price.

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Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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