Recent Purchase – CLX

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

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10 thoughts on “Recent Purchase – CLX

  1. DGJ,

    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!

    Best wishes.

  2. 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.

  3. 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.

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