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Clorox: Huge 14% Dividend Increase For This Dividend Aristocrat

Mar. 02, 2018 1:36 AM ETThe Clorox Company (CLX)16 Comments
Sure Dividend profile picture
Sure Dividend


  • Clorox recently increased its dividend by 14%, and has raised its dividend for 41 consecutive years.
  • Margins are under pressure from rising raw materials and transportation costs, but product innovation and price increases will fuel growth.
  • With a 3% yield, Clorox is a high-quality holding for dividend growth.

By Bob Ciura

Investors looking for high-quality dividend growth stocks, can really clean up with consumer staples stocks like The Clorox Company (NYSE:CLX). Clorox has increased its dividend for over 40 consecutive years, which places it on the list of Dividend Aristocrats. The Dividend Aristocrats are a group of 53 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. You can see all 53 Dividend Aristocrats here.

Clorox recently extended its dividend growth streak to 41 years, with a 14% dividend increase on February 13th. This is yet another indication that household products companies like Clorox are strong holdings for dividend growth. Clorox has a diversified portfolio of strong brands. Its products are used every day by millions of households, even during recessions, which allows Clorox to raise its dividend each year like clockwork.

The recent dividend increase elevates Clorox’s dividend yield to 3%. Clorox’s dividend yield is well above the S&P 500 Index average yield, which is now below 2%. Clorox remains a high-quality holding for dividend growth investors.

Business Overview

Clorox also has a diversified product portfolio, which consists of household cleaning products, food, and cat litter, among others. Its core brands include Clorox, Pine-Sol, Glad, Kingsford, Hidden Valley, Brita, Burt’s Bees, Fresh Step, and RenewLife. As you can see in the following image, over 80% of the company’s global sales are derived from products that hold either the #1 or #2 market share in their respective categories.

Source: 2017 Analyst Day Presentation, page 11

Clorox generates annual sales of $6 billion. Its core product categories are household and cleaning, which each represent approximately one-third of total sales. Lifestyle products represent 16% of sales, with the remainder of sales generated in the international markets.

Clorox’s products enjoy strong demand, which leads to volume growth, while its

Investors looking for high-quality dividend growth stocks, should consider the Dividend Aristocrats, which have raised their dividends for 25+ consecutive years. The Dividend Aristocrats have significantly outperformed the S&P 500 Index in the last 10 years. Their outperformance is likely to continue moving forward, as the Dividend Aristocrats have strong brands and durable competitive advantages. Clorox is a Dividend Aristocrat. Find out if it is cheap enough to buy with our service Undervalued Aristocrats, which provides actionable buy and sell recommendations on some of the most undervalued dividend growth stocks around. Click here to learn more.

This article was written by

Sure Dividend profile picture
Sure Dividend helps individual investors find high quality dividend growth stocks with strong competitive advantages suitable for long-term holding. The authors who write for Sure Dividend on Seeking Alpha are as follows:Bob CiuraBen ReynoldsJosh Arnold

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (16)

CLX or CL where are you putting your money?
Xav Welsh profile picture
Still too expensive for me...but a good one to add on a bigger pullback.
petektf profile picture
10 years later?
amegalo profile picture
Scooted: I'm not sure you should mix bleach and baking soda.
Scootrd profile picture

Thank you Amegalo , that was a quite funny,

But actually you can mix the two :)

Makes a perfect tile grout cleaner to remove mold.
Mix baking soda and bleach together in the bowl until it forms a thick paste. Apply the paste to the dirty grout lines and let it sit for 30 minutes.

The combination is also good for Laundry!

During 2008 recession CHD continued to post positive returns while the market tumbled.

Wow positive returns in down cycles, exceptional tile grout for mold, and
whiter brighter clothes to boot.

Now that's real synergy :)

Semper Fi,

Then out spake brave Horatius, The Captain of the Gate -
“To every man upon this earth, Death cometh soon or late.
And how can man die better, Than facing fearful odds,
For the ashes of his fathers, And the temples of his gods?"
-Macaulay’s Lays of Ancient Rome
amegalo profile picture
Scooted.. thank for the recipe
I've always used only a 25% bleach/ water solution for mold removal , but I'll try yours. Mold is a living organism and the bleach actually kills it.
Out of humor comes information for all to use. Thanks
petektf profile picture
Thanks, this stock is interesting to me, the stability, probably adding to my next basket of core.
D.Graves profile picture
Thanks just added Clorox to my watch list, looking to diversify some more.
David Pinsen profile picture
Did you test this as a title?: "Clorox: Cleaning With The Dividends"
Gotta love corporate talk when flat revenue for the last decade at a company that makes toilet cleaner is called "Sales growth from product innovation."
petektf profile picture
I was thinking the same thing. I guess making a slightly different new product is innovation.....to them. Anyways, this is not a growth stock, or seems like classic growth.
Great solid core holding.. Long CLX forever.
Scootrd profile picture
Always felt a merger of Clorox (CLX) with Church and Dwight (CHD) would produce enormous synergies for the combined entity.

Just my 2 cents -
Others mileage may vary (and usually does)
Semper Fi,

There is knowledge, and there is wisdom. The difference is compassion.
- TAO of Pooh

Long CLX since 2008
You got in at the right time !
ULS profile picture
@author, I second the comment made by Andreas above. And I like your approach to assessing the investment-worthiness of companies.

Keep up your work, and I wish you lots of success in growing your own business as well.
Andreas Hopf profile picture
Interesting. In the long run, maybe an acquisition target. Good to see you putting this perceived wallflower on retail investors' radars.
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