The Clorox Company: A High Price For Quality

dividend growth investing | stock analysis | minimum acceptable rate of return

The Clorox Company (CLX) is one of the most well-known consumer staples businesses around.  Aside from the namesake Clorox bleach, Clorox also owns brands such as Kingsford Charcoal, Brita water filters, Pine-Sol, Fresh Step and Scoop Away cat litter, Glad trash bags and food storage, Liquid Plumb, Burt's Bees, Hidden Valley Ranch as well as others.

Clorox is organized into 4 segments: cleaning ~34% of sales, household ~32% of sales, lifestyle ~17% of sales and international ~17% of sales. According to Clorox's investor fact sheet, Clorox has 8 brands with over 50% market share with 5 additional brands that come in second in market.  That kind of dominance has allowed Clorox to continually grow over time as well as command excellent cash generation and profitability.

Dividend History

The bulk of my investments are made in dividend growth stocks.  That means I want the businesses I own to pay and grow their payment, to me the owner, year after year.  This helps to shift the focus away from whether the share price is rising or falling and towards the fundamentals of the business and its ability to continue improving and paying a higher dividend.

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