Core Viewpoint - Clorox's dividend yield of 4.07% is significantly higher than its peers, reflecting investor skepticism about its near-term prospects rather than superior dividend growth potential [1] Dividend Performance - The dividend has increased from $450 million in fiscal 2018 to $602 million in fiscal 2025, a growth of 33.8%, with a compound annual growth rate of approximately 5.2% [2] - Recent quarterly payments have stabilized at $1.24, up from $1.22 in the first half of 2025 [2] - The payout ratio improved to 61.4% in fiscal 2025, with operating cash flow at $981 million covering the $602 million dividend [5][7] Operational Challenges - Clorox's gross margin has compressed to 43.2% due to consumers opting for cheaper alternatives, impacting sales volumes despite price increases [9] - The company reported a profit margin of 11.2% and an operating margin of 14.1%, trailing behind Procter & Gamble's margins [10] - A $580 million SAP enterprise resource planning implementation caused significant disruption, with second-quarter fiscal 2026 results showing revenue of $1.67 billion but adjusted earnings per share of $1.39, missing analyst expectations [8] Strategic Moves - Clorox's $2.25 billion acquisition of GOJO Industries aims to strengthen its health and hygiene portfolio but adds integration risk during a challenging operational period [11] - The company faces a $14.15 million fine from the Consumer Product Safety Commission for delayed warnings about bacterial contamination in Pine-Sol products [12] Investor Sentiment - Clorox repurchased $332 million worth of shares in fiscal 2025, indicating management's confidence in the valuation, though institutional investors show mixed conviction [13] - The current dividend appears safe in the near term based on cash flow coverage, but the margin for error has narrowed [14] Future Outlook - Management reaffirmed fiscal 2026 adjusted earnings guidance of $5.95 to $6.30 per share, projecting gross margin expansion in the latter half of the fiscal year [14] - The upcoming CAGNY Conference will be critical for investors to assess guidance for fiscal 2027 and the timeline for margin recovery [15] - The 48-year dividend growth streak provides historical comfort, but recent cash flow volatility highlights the pressures faced by the company [16]

Core Viewpoint - Clorox's 4.07% dividend yield is attractive but faces challenges due to operational turbulence and margin pressure, raising questions about sustainability in the face of potential risks ahead [1][2] Dividend Performance - Clorox paid $1.24 per share on February 13, 2026, marking 48 consecutive years of dividend increases, with a total dividend payout of $602 million for fiscal 2025 [1] - The company generated $981 million in operating cash flow, resulting in a 61.4% payout ratio, indicating adequate coverage of the dividend [1] - Free cash flow for fiscal 2025 was $761 million, providing 1.26x coverage after capital expenditures, a recovery from fiscal 2024's 0.81x coverage [1][2] - The dividend has grown 33.8% from $450 million in fiscal 2018 to $602 million in fiscal 2025, with a compound annual growth rate of approximately 5.2% [1] Yield Context - Clorox's 4.07% yield is significantly higher than Procter & Gamble's 2.63% and Kimberly-Clark's 4.76%, reflecting investor skepticism about Clorox's near-term prospects [1] - The stock has seen a year-to-date gain of 26.21% as of February 12, 2026, but is down 11.86% over the past year and 20.32% over five years, indicating a depressed stock price of $125.82 [1] Operational Challenges - Clorox's gross margin has compressed to 43.2% due to consumers opting for cheaper alternatives, with management projecting only flat to 1% organic growth for the latter half of fiscal 2026 [1] - The company's profit margin of 11.2% and operating margin of 14.1% are below those of Procter & Gamble, highlighting an efficiency disadvantage [1] Strategic Moves - Clorox's $2.25 billion acquisition of GOJO Industries aims to strengthen its health and hygiene portfolio but introduces integration risks during a challenging operational period [1] - The company faces a $14.15 million fine from the Consumer Product Safety Commission for delayed warnings about bacterial contamination in Pine-Sol products, involving 37 million bottles recalled [1] Future Outlook - Management has reaffirmed fiscal 2026 adjusted earnings guidance of $5.95 to $6.30 per share, projecting gross margin expansion in the latter half of the year [1] - The upcoming CAGNY Conference on February 19, 2026, will be critical for investors to assess guidance for fiscal 2027 and the timeline for margin recovery [2]

Core Insights - Clorox Company (CLX) reported mixed results for Q2 fiscal 2026, with adjusted earnings of $1.39 per share, missing estimates by 2.8%, while net sales of $1.67 billion exceeded expectations by 2.5% [1][10] - The company's shares have increased by 9.5% since the Q2 results announcement on February 3, 2026, outperforming the industry which declined by 0.2% over the past six months [1] Financial Performance - The International segment showed resilience with a 7% year-over-year sales increase, driven by positive price mix, favorable foreign exchange rates, and increased volumes, with organic sales up 5%, surpassing the consensus estimate of a 0.75% decline [5][10] - The Health and Wellness segment experienced a 2% year-over-year growth in sales, with organic sales also rising 2%, exceeding the Zacks Consensus Estimate of a 3.3% decrease, although adjusted EBIT dipped 2% to $190 million, still above the consensus estimate of $171 million [6][10] - The Household segment faced challenges with a 6% decline in net sales, attributed to lower volume and negative price mix, with organic sales decline exceeding the consensus estimate of a 3.3% decrease; adjusted EBIT increased by 3% to $22 million, but fell short of the consensus estimate of $53 million [7][10] - The Lifestyle segment reported a 5% sales decline, with organic sales also down more than the consensus estimate of a 3.9% decline; adjusted EBIT plummeted 54% to $72 million, although it surpassed the consensus estimate of $66 million [8][10] Strategic Initiatives - Clorox is undergoing a transformation to adapt to a dynamic environment, focusing on strengthening core operations through digital transformation, improved execution, and continuous innovations aimed at enhancing consumer value [2] - The company's long-term success is supported by a disciplined focus on key financial, operational, and strategic metrics that drive efficient growth and reinforce market leadership [3]

Core Insights - The Clorox Company, based in Oakland, California, has a market capitalization of $14.5 billion and is known for its well-established brands such as Clorox, Pine-Sol, Glad, Burt's Bees, and Hidden Valley [1] Performance Overview - Over the past 52 weeks, Clorox shares have declined by 18.1%, underperforming the S&P 500 Index, which increased by 15.6%. However, year-to-date (YTD), Clorox stock is up 19.5%, outperforming the S&P 500's 1.7% return [2] - Clorox has also underperformed the State Street Consumer Staples Select Sector SPDR ETF (XLP), which rose by 9.1% over the past 52 weeks, but has outpaced XLP's 12.2% YTD increase [3] Earnings Report - On February 3, Clorox shares rose by 1.5% following a mixed Q2 earnings release. The company's revenue slightly decreased year-over-year to $1.7 billion but exceeded Wall Street expectations by 2.5%. Adjusted EPS fell by 10.3% from the previous year to $1.39, missing analyst expectations of $1.43 [4] Future Earnings Expectations - For the current fiscal year ending in June, analysts project Clorox's EPS to decline by 23.3% year-over-year to $5.92. The company's earnings surprise history is mixed, with two out of the last four quarters exceeding consensus estimates and two missing [5] Analyst Ratings - Among 18 analysts covering Clorox, the consensus rating is a "Hold," consisting of one "Strong Buy," 13 "Hold," and four "Strong Sell" ratings [5] - Morgan Stanley analyst Dara Mohsenian maintained a "Hold" rating on Clorox with a price target of $136, indicating a potential upside of 12% from current levels. The company is currently trading above its mean price target of $116.27, while the highest price target of $151 suggests a potential upside of 24.3% [7]

Core Viewpoint - The Clorox Company (NYSE:CLX) has shown mixed performance, with a 19% decline over the past year but an 18% increase year-to-date, indicating potential recovery and investment interest [1]. Group 1: Stock Performance - Clorox shares are down by 19% over the past year but have increased by 18% year-to-date [1]. - Wells Fargo raised its price target for Clorox from $108 to $115 while maintaining an Equal Weight rating [1]. - JPMorgan increased Clorox's price target from $114 to $117, keeping a Neutral rating [1]. Group 2: Financial Performance - In its February earnings report, Clorox reported earnings per share of $1.39 and revenue of $1.67 billion [1]. - The earnings missed analyst estimates of $1.43, while revenue exceeded estimates of $1.64 billion [1]. Group 3: Strategic Moves - Clorox's acquisition of the firm responsible for manufacturing Purell hand sanitizer is expected to drive sales growth in the low double-digit percentages [1].

Core Viewpoint - January has been a turbulent month for the market, highlighted by a significant downturn during the shortened holiday week of the 20th, marking the worst day for the market since October [1] Market Performance - The market experienced its worst day since October during the holiday week of January 20th, indicating heightened volatility and potential investor concerns [1]

Group 1 - Concerns about an AI bubble and disruptions to business models due to AI are increasing [1] - This situation may lead to a renewed interest in "boring" companies that have stable business models and can reduce expenses [1] - The investment strategy focused on dividend and value stocks has garnered a near 5-star rating on Tipranks.com and over 9,000 followers on Seeking Alpha [1]

Core Insights - The Clorox Company (NYSE:CLX) is recognized as one of the 15 Best Wide Moat Dividend Stocks to Invest in [1] - BofA analyst Anna Lizzul raised the price target for Clorox to $112 from $110 while maintaining a Neutral rating, following the company's fiscal Q2 results which showed adjusted EPS below estimates due to falling gross margins [2] - Clorox's second-quarter profit missed market expectations, attributed to consumers opting for cheaper alternatives amid inflation, impacting demand for branded cleaning products [3] Financial Performance - Clorox reported an adjusted EPS of $1.39 for the quarter, below the estimated $1.43, with revenue declining 1% year-over-year to $1.67 billion, which was better than the expected 2.7% decline to $1.64 billion [6] - The Household segment, Clorox's second-largest by revenue, experienced a 54% drop in adjusted EBIT due to increased manufacturing and logistics costs alongside lower net sales [4] - Management reaffirmed its full-year outlook, projecting a 6% to 10% drop in net sales and adjusted EPS between $5.95 and $6.30, citing earlier order fulfillment challenges as a factor [7] Strategic Developments - Clorox is expanding into new categories, including the ready-to-eat market with protein-focused snacks, and is progressing with a $2.25 billion acquisition of GOJO Industries, the maker of Purell, to enhance its health and hygiene portfolio [5] - The company operates across four segments: Health and Wellness, Household, Lifestyle, and International, indicating a diversified business model [8]

Group 1 - The Clorox Company will have its Chair and CEO Linda Rendle and CFO Luc Bellet as featured speakers at the CAGNY annual conference on February 19, 2026 [1] - A live webcast of the presentation will start at 2:00 p.m. ET and will be accessible on the company's website, with a replay available after the event [1] Group 2 - The Clorox Company, headquartered in Oakland, California since 1913, focuses on sustainability and consumer-centric innovation [2] - The company offers a range of trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, and Pine-Sol®, as well as international brands like Chux®, Clorinda®, and Poett® [2]

Group 1: Investment Moves - The company increased its stakes in three dividend stocks, specifically Brookfield Renewable Partners, Hormel Foods, and Clorox, during late 2025 and early 2026 [1] - The decision to invest in Brookfield Renewable was driven by its diversification into energy storage and nuclear power, alongside its core renewable energy business [2][3] - Hormel Foods and Clorox were initially sold to offset gains but were repurchased with increased positions due to their potential for growth and restructuring efforts [4][5] Group 2: Company Performance and Dividends - Brookfield Renewable Partners operates in key clean energy segments and has significant partnerships with major companies like Microsoft and Google, contributing to its appeal [3] - Hormel Foods has a historically high dividend yield of 4.7% and is expected to return to growth with new leadership and restructuring [6] - Clorox also has a strong dividend yield of 4.5% and is pursuing growth through the acquisition of Gojo, the owner of Purell [5][6] Group 3: Market Dynamics - The consumer staples sector has been underperforming due to changing consumer preferences and economic conditions, prompting strategic selling of certain stocks [4] - The long-term investment strategy focuses on high-yield dividend stocks, suggesting a preference for stability and reliable income [7]