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
10 thoughts on “Recent Purchase – CLX”
Good buy. I remember a while back CLX was an acquisition target. Luckily that didn’t go through. It’s a good business with great brands. Good luck with the new investment.
Thanks Henry. Looking forward to even better performance from CLX in the long-term.
Not a bad buy here on the pullback. The forward p/e is under 19, and I agree with Henry, CLX has solid brands.
Thanks Captain. Looking forward to holding CLX for the long term.
I like CLX, and bought some a while back at a similar price.
It’s surprising what a large market share they have in certain products, especially their namesake bleach. You just wouldn’t think that would be a “moatable” product, but it is.
Glad to have you on board as a fellow shareholder!
Thanks DM. You are correct. They have lot of brands that are no common and popular.
I’ve been looking at CLX for a while now but have not made the purchase yet. There are always more attractive companies on my list. I think you made a solid buy regardless.
Yeah.. CLX has been on my radar for a long time now and made the purchase when it dipped a bit. It is little expensive, but I think in the long run it should even out.
Thanks for stopping by.
CLX is a long time holding of mine and a great long term dividend payer and raiser. I think that CLX is still a bit overpriced at a PE of 20 or so. Not sure how fast growth will come to the stock in the next few years but otherwise a very solid long term buy with a really nice current yield.
It is still a bit expensive and have been waiting for it to come down for a long time. So when it dipped by about 5% from 92 to ~87, I went ahead and made the purchase. Still a bit expensive at ~87, but I think in the long run, it should not matter.
Thanks for stopping by and sharing your thoughts.