There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

April 7, 2009 - Church & Dwight Co., Inc. (CHD-NYSE) together with its subsidiaries, develops, manufactures, and markets a range of household, personal care, and specialty products under various brand names in the United States and internationally. The company operates in three segments: Consumer Domestic, Consumer International, and Specialty Products.

The Consumer International segment primarily sells various personal care products in international markets, including France, the United Kingdom, Canada, Mexico, Australia, Brazil, and China.

The Specialty Products segment produces sodium bicarbonate, which it sells together with other specialty inorganic chemicals for a range of industrial, institutional, medical, and food applications. This segment also sells a range of animal nutrition and specialty cleaning products. Church & Dwight sells its products through supermarkets, drug stores, mass merchandisers, industrial customers, and distributors. The company was founded in 1846 and is based in Princeton, New Jersey.

Every year since 1995 earnings improved, going from 17 cents then to last year's $2.86. Average annual earnings growth over the last 5 years was 18% while sales averaged 13% a year increases. First quarter report is due this month and analysts expect 86 cents a share, up from 81 cents last year in the first period. For the second quarter, look for 78 cents vs 66 cents last year. For the full year, the consensus for 11 analysts is $3.28, then $3.67 for 2010.

The stock price held up well over the last 6 months, giving up a relatively small amount after hitting its all time high of $66.50 in the fall of last year. While most stocks were down 40% to 50% by October/November, the lowest point for CHD was down 30%. It's bounced a little from its 52-week low and is progressing upward again. Can it keep going?

Most of CHD's products are moderately priced, giving consumers value in this difficult economic environment. Modest price increases over the last several months are holding while competition is slashing prices to keep market share. More than half of CHD's products had price raises. Analysts believe sales growth should slow modestly this year if the economy stays sluggish. Look for CHD to make acquisitions during this difficult time to help bolster the top line.

The current slowdown may be changing consumers' buying habits. If they stay frugal even after signs of growth appear, it will be interesting to see if they keep buying value products. Most likely they will since savings should be part of every consumer's new habits. If so, CHD should see very positive growth even after economic times improve. Of course, if the consumer starts looking for premium products once good times return, CHD's growth will slow, though it should still see decent improvement.

More numbers: Forward P/E is 14.7. Price to sales is 1.55 while Price to book is 2.82. Operating margin for the last 12 months was 14.85% and Profit margin was 8.06%. Return on equity was 16.18%. Revenues were $2.42 billion with quarterly revenue growth of 11.2% in the most recent quarter compared to the same quarter last year. Total cash is $198 million. Total debt is $856 million. Debt is 37% of capital. Current ratio is 1.72. Book Value per share is $19. The stock's very low beta of .38 is notable. There are 70.14 million shares outstanding and a float of 69.51 million. The annual dividend is 36 cents for a yield of .7%.

CHD is a basic, solid company, making everyday products, selling them at good prices. It's a value proposition for consumers, even with recent price hikes. What will be important to watch is how consumers react when the economy starts to recover. Will they stay with CHD's value products or reach for premium brands? How they choose will make a difference to CHD's top and bottom lines.

Company Web site: www.churchdwight.com

- Ted Allrich