This Household Name has Quietly Become a Dividend Powerhouse with 4.5% Yields

The Clorox Company (NYSE: CLX) has been a household name (quite literally) for more than 100 years. Founded in 1913, Clorox is known for its cleaning products and consumer staples.

Today, those products can be found in millions of kitchens and bathrooms in more than 100 countries worldwide.

For dividend investors, it's not just the bleach that's dependable – Clorox’s dividend track record is just as strong.

While the stock has gone through a rough stretch with a decline of 22.11% in the past six months, CLX now offers a notably attractive dividend yield of 4.15%.

This places it among the most rewarding picks in the consumer staples sector.

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Operational Overview and Recent Earnings

Clorox’s recent fourth-quarter results disclosure for the 2025 Fiscal Year made for fascinating reading. The company continued to pursue cost savings, which is a strategy vital to achieving its goal of margin expansion. 

Net sales increased by 4% to $2.0 billion, while diluted EPS increased 55% to $2.68 from $1.70.

Gross margin was flat, but what was most interesting was the nod to a significant digital transformation initiative, which is positioning this century-old firm as a serious player in the modern era.

Set to be rolled out during the 2026 Fiscal Year, the enterprise resource planning transition in the U.S. will modernize operations and unlock further efficiencies and cost savings. 

Clorox has also invested heavily in its brand portfolio over the last 12 months.

Examples include the relaunch of the Poett's fragrance platform, the expansion of the Burt's Bees product range, improvements in product durability, the launch of seven new Hidden Valley Ranch flavors, as well as product partnerships with Hot Pockets, Taco Bell, Burger King, and DiGiorno.

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*Results may not represent all stock picks and may reflect partially closed positions. Investing involves risk, and past performance does not guarantee future results. This is not financial advice.

Dividend Profile

With over 45 consecutive years of dividend increases, Clorox brings blue-chip reliability to any income-focused portfolio. The Oakland, California, company also increased its quarterly dividend on July 31, with a 1.6% uplift.

This rise takes the quarterly payout to $1.24 per share and coincided with a strong Q4 earnings report which exceeded analyst expectations.

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Bear Case

The consumer environment is challenging for brands of all stripes right now, and Clorox isn't immune to those roadblocks despite its strong earnings release. 

Historically, the brand has relied heavily on price increases to offset falling volume across categories like cleaning, bags, wraps, and water filtration.

However, this isn’t sustainable long term, with consumers known to be trading down to cheaper private label brands as they continue to feel the burden of higher food costs along with household staples. 

Clorox also carries a significant debt pile and is expected to reach a payout ratio of 80–90% of earnings by 2026. If volumes keep slipping and pricing power fades, revenue will stagnate or decline, pressuring cash flow and dividend sustainability.