I purchased 15 shares at $87.50 on 8/1/2014. With commission, the total cost comes to $1,319.50. With a quarterly dividend of $0.74/share, the yield comes to 3.38% and this purchase adds $44.40 to my forward annual dividends.
Clorox is a Dividend Champion with 37 consecutive years of dividend raises. The company has stable revenue and profits and the payout ratio is around 60%. Morningstar has a fair value of $96.00 for the stock and it is rated 4 stars.
But the last few years has been stagnant. The revenue has been around 5,500Mil and profits between 540Mil and 570Mil. The outstanding shares also has been stagnant too.
But I feel that the company has a lot of brands and products that are staple in most households and is a good buy for long-term. The recent results provided an opportunity to initiate position at a decent valuations.
The portfolio page will be updated soon to reflect this purchase.
Disclosure: Long CLX
Image courtesy: clorox.com