While Church & Dwight Co., Inc. (NYSE:CHD) shares aren’t cheap, the stock has traversed a steady upward climb that is nothing short of impressive. The shares only yield around 1.8%, so income investors should look elsewhere, but those seeking growth should definitely consider them.
A Growth & Income Option
Another company that’s known for buying, integrating, and building brands is health care and consumer products giant Johnson & Johnson (NYSE:JNJ). The most obvious area where the company has done this is in its consumer arm.
For example, Aveeno’s oatmeal wash was pretty much a niche industry player before Johnson & Johnson bought it in 1999. Since that time, the Aveeno line has been extended with new products and received the benefit of Johnson & Johnson (NYSE:JNJ)’s marketing might. An acquisition machine, Johnson & Johnson (NYSE:JNJ) tries to do similar things throughout its business.
The more recent purchase of Synthes is an example on the medical device side of the business. This buy extends the company’s position in selling devices to treat trauma victims. It shouldn’t take too long before Johnson & Johnson (NYSE:JNJ) starts to bring out new products, though the medical focus means that most investors won’t realize it.
Although Johnson & Johnson (NYSE:JNJ) is often priced at a premium, it has been trading at reasonable levels of late. Concerns about consumer product recalls and drug patent expirations, however, have begun to abate. So, investors seeking a mix of growth and income from a household name should take a look.
Indeed, the company’s around 3% dividend yield and long history of annual dividend hikes are truly compelling. Sales, meanwhile, look like they are back in growth mode after dipping during the 2007 to 2009 recession.
Building Brands
It’s hard work to build brands and not every company is good at it. B&G’s niche is taking on older brands that need a little love; It’s a role in which it has excelled. Church & Dwight Co., Inc. (NYSE:CHD) and Johnson & Johnson (NYSE:JNJ), meanwhile, are two larger options that have long histories of success building brands. While their larger sizes limit the impact on the top and bottom lines to some degree, it also helps makes them safer investment options.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Three Growing Companies Building Powerful Brands originally appeared on Fool.com is written by Reuben Brewer.
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