Church & Dwight

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Church & Dwight ( CHD) is a consumer product maker that's often ignored by investors who favor its bigger peers. But that doesn't change the fact that this mid-cap name owns a portfolio that's full of household-name brands: Arm & Hammer, Oxiclean, Nair and Orajel are some of the best known ones.

Arm & Hammer in particular is a cash cow for Church & Dwight. Close to 90% of American households buy Arm & Hammer products, a level of consumer stickiness that few other consumer stocks can boast.

With nearly saturated markets here at home, Church & Dwight has shifted its focus onto a few fronts: cutting costs on its mainline products, introducing new names to grocery shelves, and expanding its reach internationally. On the cost front, C&D has done an admirable job keeping costs low in an environment where cost inflation is a big concern for manufacturers; the firm has managed to keep its net profit margins in the low double-digits.

It probably goes without saying that Church & Dwight doesn't have the wherewithal of its blue chip peers. That said, the firm does have adequate liquidity on its balance sheet as well as a debt load that's more than manageable. Currently, C&D's dividend payout weighs in at just shy of 2%.

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