The Coca-Cola Company (KO), McCormick & Company, Incorporated (MKC), The J.M. Smucker Company (SJM): Companies to Hold for the Long Term

Toothpaste, detergent, and baking soda

Personal products company Church & Dwight Co., Inc. (NYSE:CHD) sells the famous Arm & Hammer branded detergent and baking soda. It also sells Orajel instant pain relief products, pregnancy tests, and hair remover. Church & Dwight Co., Inc. (NYSE:CHD) delivered a total return of 101% versus a 44% return for the S&P 500 over the last five years. Unlike the other three companies Church & Dwight is relatively small and nimble. Increasing market share boosted revenue 13% in its most recent quarter. Management’s focus on the small stable of brands such as Arm & Hammer, Nair, and Oxiclean will prove invaluable to expanding shareholder value over the long term. After all it’s easier to grow from a small base.

Conclusion

On the whole, these companies sell products crucial to modern-day living such as bottled water, spices, peanut butter, and laundry detergent. People will buy these products over and over as they use them up in good times and bad. These qualities make it easier for you to hold the stocks over the long term, minimizing transaction costs and taxes.

The article 4 Companies to Hold for the Long Term originally appeared on Fool.com and is written by William Bias.

William Bias owns shares of Coca-Cola. The Motley Fool recommends Coca-Cola.

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