What Clorox actually does

Clorox makes cleaning and household products, plus food and personal care. Its brands include Clorox bleach and wipes, Pine-Sol, Glad bags, Brita filters, Burt’s Bees, Hidden Valley ranch dressing and Kingsford charcoal. It was founded in 1913 in Oakland, California.

How the business makes money

It sells branded goods that customers buy again and again, mostly through large retailers. Strong brands let it charge more than store-brand alternatives, but the company is exposed to the cost of raw materials, such as resin, chemicals and soybean oil, and to retailers who sell cheaper private-label versions.

The dividend story

Clorox is a Dividend Aristocrat. It pays quarterly and has raised its dividend every year for decades. The yield is moderate, and the payout takes a big share of profit, so the company needs steady earnings to keep raising it.

What to keep an eye on

  • Input costs. Higher resin and transport costs cut margins.
  • Private labels. Store brands compete when shoppers are squeezed.
  • Operations. A 2023 cyber attack disrupted production and shows execution risk.
  • Payout ratio. A high share of profit leaves less room for error.

Quick take

Clorox is a classic defensive dividend payer. It is steady but not fast-growing, so watch margins and the payout ratio.