Tuesday, February 09, 2010

Church & Dwight Great Earnings Still No Dividend Increase

Church & Dwight (CHD) announced some rather attractive results. They also successfully closed down a plant and moved production to a new facility. James R. Craigie, Chairman and CEO announced EPS guidance to be in the range of $3.93 to $4.00in 2010, which is an increase of 13% to 15%.

Not that long ago I wrote about a confused dividend signal. EPS guidance increases of 13% to 15% should get more than a 0% dividend increase. The only positive is that the cash that is being generated is paying down debt. Look at the increase in short term debt, decrease in long term debt and increase in cash position which.

Why are dividends touted but not increased?