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Clorox: Revisiting The Zero Return Call

Oct. 04, 2021 8:00 AM ETThe Clorox Company (CLX)UL, UN17 Comments


  • Clorox continues to underperform the broader market and the staples sector.
  • We look at our 10-year zero total return call from earlier and revise our estimates.
  • Has the stock actually become more expensive despite falling?
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Kaliningrad, Russia - January 31, 2021: Cleaning products on supermarket shelves.

Trots1905/iStock via Getty Images

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This article was written by

Trapping Value profile picture

Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder.

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Comments (17)

Trapping Value profile picture
Look to buy the next earnings swoon.
BeaBaggage profile picture
@Trapping Value I guess $PG brought the 'group' down, Clorox, Colgate, Church & Dwight.. it still seems like the covid inspired cleaning wave has waned despite the virus going on..in stores locally cleaning products are heavily discounted and they are up against rising costs etc. seekingalpha.com/...
Trapping Value profile picture
@BeaJawa Yes for sure. They warned that things were not getting better for Q4.
clinton77 profile picture
Have been out of all staples for over a year now. Added a starter position in CLX, CL and MKC today. Hoping they all drop so I can add more lower.
160 to 170 Seems to be a resistance level. I May not be able to get it lower. Does anyone agree ?
CincinnatiRick profile picture
@Trapping Value Anyone (and everyone) can and will publish their touts. You are to be commended for looking at and sharing your analysis of situations that, upon scrutiny, do not warrant investment.
Computed an intrinsic with 21-variable company and economy model, revenues growing at a high 7% for the next 10 years and a margin of safety and quality adjustment. (Proprietary model, not for publication.) Resulted in $101/share. Ouch. Staying with Essity and Unilever in this sector.
@wdjax0n and/or @Trapping Value Slightly OT: UL

I am looking at UL. Since you both seem to own it, maybe you could answer a question or two for me.
1. Are UL's dividends tax-qualified (i.e. taxed as capital gains) for U.S. investors?
2. There is no foreign tax withholding, right?

@kkrtrek1 There is no foreign tax withholding on dividends paid by Unilever PLC: as a corporate resident of the United Kingdom. Dividends are believed to be "qualified" for US residents. The NYSE listing is an ADR with associated minor costs.
Baldy2000 profile picture
@wdjax0n At Schwab those UL ADR minor costs are 1% of the dividend received.
Dividend aristocrat CLX, is down 18%, YTD, looking for a 3%, yield.
@Money 29 I believe 160 to 170 is a bottom resistance level. Difficult to get it much lower.
The compounded annual return from 2012 to date with dividends reinvested is slightly greater than 12%. That does not strike me as insignificant or unworthy.
Trapping Value profile picture
@Mark Roth The compounded return from the top is negative 20% annualized.
Neither of those numbers are relevant to the forward return which appears to be extremely poor to me.
All in good time....
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