"Clorox ( NYSE: CLX | CLX Price Prediction) spent the past 10 years doing what consumer staples are supposed to do: pay reliably, raise dividends annually, and grind through cycles. The pandemic briefly turned cleaning brands into pantry essentials, sending shares above prior highs. Then came margin compression, a 2023 cyberattack, and an ambitious $580 million ERP overhaul that the company finished rolling out in winter of FY2026."
"Here's how an investment in Clorox stock would have fared, using dividend-adjusted prices through May 7, 2026, and compared to S&P 500 returns: 1-Year Return: $1,000 became $706 (−29.4%). S&P 500: $1,304 (+30.4%). 5-Year Return: $1,000 became $597 (−40.3%). S&P 500: $1,733 (+73.3%). 10-Year Return: $1,000 became $940 (−6.0%). S&P 500: $3,553 (+255.3%)."
"The dividend did the heavy lifting. Quarterly payouts climbed from $0.77 in 2016 to $1.24 today, lifting total return well above the price-only path. Even so, a decade of compounding dividends barely kept the position whole, while the S&P 500 more than tripled. Timing punished latecomers especially: the 2020 spike to $239 looked like a runway and turned into a ceiling."
"The bull case for Clorox here rests on whether the $5.45 to $5.65 adjusted EPS guidance is the trough and the 5.76% dividend yield survives intact. On the bull side: ERP disruption fades, Purell adds scale, gross margin normalizes, and a forward P/E near 13 rerates higher. Director Pierre Breber bought 5,000 shares at around $85.82 on May 5, the kind of signal one can respect."
Clorox generated reliable dividend payments and increased quarterly dividends from $0.77 in 2016 to $1.24 by May 2026. Shares rose during the pandemic but later faced margin compression, a 2023 cyberattack, and an ERP overhaul completed in winter FY2026. A GOJO Industries acquisition closed on April 1, 2026, expanding the hygiene portfolio alongside brands including Glad, Brita, Kingsford, Hidden Valley, and Burt's Bees. Dividend-adjusted performance lagged the S&P 500 across 1-, 5-, and 10-year periods, with the dividend providing most of the total return. The outlook depends on adjusted EPS guidance and the durability of the dividend yield.
Read at 24/7 Wall St.
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