Clorox CompanyCLXCOMMENTFeb 08, 2017Stock price when the opinion was issued
As of Jun 10, 2026. Market Open.
She bought it because it trades at 16x vs. historically 18-20x, and pays a safe 4.9% dividend which has increased for 24 years in company history. Rocked by Covid, only now are earnings are finding a consistent trajectory of 6-8% earnings growth with dividend growth. From Jan.1 to Feb. 9, shares jumped 26%, but shares fell when the Iran war began, because many of their products rely on oil. Whenever the oil price goes down, these shares go up. Also, it's AI proof.
This has done well and they’ve had some positive earnings revisions. In the “staples” category it has a few things going right for it. It is a higher payor, so you get a nice dividend. Earnings growth should be in the high to mid single digits. The catch is, any valuation is quite rich. It’s come off a little since the peak, but staples, as a whole, is trading expensive. Interest rates going higher will put pressure on the stock.