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Intro

Dividend Research Report

Every issue, we break down one Dividend Aristocrat using the MaxDividends framework to dеtеrminе whеthеr it's а Buy, Hоld, or Sеll.

🎩 CLX — The Clorox Company

A leading consumer products company behind household cleaning, disinfecting, personal care, food, and lifestyle brands used by millions of consumers across the U.S. and international markets.

  • 💰 Dividend Yield: 4.73%

  • 📈 10-Year Dividend Growth: +5.00% CAGR

  • 🏆 Dividend Streak: 49 consecutive years

MaxDividends Overview

Let’s answer the questions that matter before investing in Clorox:

  • Is Clorox undervalued, fairly valued, or overvalued today?

  • Does CLX deserve a Playing, Watching, or Skip rating at current prices?

  • How safe is the 4.73% dividend yield?

  • Can dividend growth continue after 49 consecutive years of increases?

  • What are the key risks and catalysts that could shape future returns?

  • Is CLX still a strong dividend-income opportunity — or is the higher yield signaling greater risk?

Inside the Report

  • Our proprietary Business Quality Rating

  • Dividend Safety Assessment

  • Fair Value Estimate — Is Clorox undervalued today?

  • Buy • Hold • Sell recommendation

  • Long-Term Investment Outlook

  • Historical financial performance and growth trends

  • Valuation versus industry peers

  • Five Pillars Formula Checklist

  • Key investment risks and catalysts

  • Bottom-line investment verdict

  • Advanced financial highlights and technical indicators

For today’s analysis, I’m using the MaxDividends Income System inside the MaxDividends Research Platform - the same framework I use every week to evaluate every company before adding it to my portfolio.

🟢 Business Quality

Every company first has to prove it’s a great business before I even look at the dividend. The Business Quality Score is built around five core areas:

  • 📈 Consistent sales growth

  • 💰 Growing profits

  • 🏦 Strong net income

  • 💵 Healthy dividend coverage

  • ⚖️ Conservative debt levels

⚠️ Clorox (CLX) Business Quality Score: 82/99 — Safe

Clorox scores 82 out of 99, keeping it in the Safe category — but only narrowly. The score is getting close to our 80-point threshold, where we start treating business quality as a serious concern.

🛡️ Dividend Safety

A great business doesn’t automatically make a great dividend stock. Our Dividend Safety Score combines four key factors:

  • Business Quality

  • Dividend policy and consistency

  • Payout sustainability

  • Long-term dividend growth

⚠️ Clorox (CLX) Dividend Safety Score: 78/99 — Carefully

Clorox scores 78 out of 99, putting its dividend in our Carefully category. The dividend is still being paid and has a remarkable 49-year growth streak, but the current payout profile calls for closer attention.

💲 Valuation

Clorox (CLX) - Fairly Valued

That conclusion comes from two independent checks:

  • Value vs. Peers — compares Domino’s profitability with other companies in the industry.

  • Value vs. History — compares today’s valuation with the company’s own long-term average.

Together, they suggest the stock is trading around a reasonable valuation rather than at an extreme premium or discount.

Today, the MaxDividends Research Platform rates Clorox (CLX) as Fairly Valued.

MaxDividends Consensus

Every company in the MaxDividends Research Platform falls into one of three categories:

  • 🟢 Playing — high-quality businesses worth actively considering.

  • 🟡 Watching — strong companies, but waiting for a better opportunity.

  • 🔴 Skip — companies that don’t currently meet our quality standards.

🔴 Clorox (CLX) earns a clear Skip signal.

Clorox currently falls into our Skip category. Its Business Quality Score remains above our critical threshold, but the Dividend Safety Score has moved into the Carefully zone, with dividend coverage requiring closer attention. At current levels, the overall risk profile doesn’t meet the standards we look for in a new investment.

Bottom Line

  • Business Quality Score: 82/99 (Safe)

  • Dividend Safety Score: 78/99 (Carefully)

  • Market Valuation: Fairly Valued

  • Buy-Hold-Sell Consensus: Skip

  • Best For: -

MaxDividends Research Platform (included with Premium). Dividend Scorecard.

Clorox offers an attractive 4.73% dividend yield and an impressive 49-year streak of dividend growth. But a long dividend history alone isn’t enough to make a stock a buy today.

The company’s Business Quality Score stands at 82/99 — still above our critical threshold, but close enough to warrant attention. More importantly, the Dividend Safety Score has fallen to 78/99, placing CLX in the Carefully category, while the current payout profile suggests limited room for error.

Even with the stock trading around a Fairly Valued level, the combination of business quality and dividend safety doesn’t currently provide the margin of safety we want from a new investment.

For now, CLX remains a Skip. That doesn’t mean the story can’t improve — but we’d want to see stronger fundamentals and healthier dividend coverage before reconsidering the stock.

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*Disclaimer: This article reflects the author’s personal opinions and is intended for educational and entertainment purposes only. It does not constitute financial advice in any form. Always do your own research and consult a licensed financial advisor. The author may hold positions in some of the stocks mentioned, in line with the views expressed. This is a disclosure, not a recommendation to buy or sell any securities.
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