Money and Finance
Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input costs to consumers which leads to rather consistent growth over any five to ten year period. The Clorox Company (NYSE:CLX) is a fine example of an excellent company with lots of brands holding the number one or two positions in their respective categories. While the company is excellent the valuation leaves a lot to be desired. Shares of Clorox Company closed trading on Friday, September 26th at $116.24 giving a current yield of 2.65%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Clorox Company's investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:
You'll be hard pressed to find owners of the Clorox Company that have been disappointed with their returns over the last decade. According to longrundata.com, CLX has earned investors a total return of 280.0% or 10.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Clorox has delivered.
Continue reading The Clorox Company stock analysis on Seeking Alpha.
Also, check out other stock analyses at my Stock Analysis page.
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Money and Finance
You Can't Clean Up A Messy Valuation: The Clorox Company Dividend Stock Analysis
Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input costs to consumers which leads to rather consistent growth over any five to ten year period. The Clorox Company (NYSE:CLX) is a fine example of an excellent company with lots of brands holding the number one or two positions in their respective categories. While the company is excellent the valuation leaves a lot to be desired. Shares of Clorox Company closed trading on Friday, September 26th at $116.24 giving a current yield of 2.65%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Clorox Company's investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:
You'll be hard pressed to find owners of the Clorox Company that have been disappointed with their returns over the last decade. According to longrundata.com, CLX has earned investors a total return of 280.0% or 10.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Clorox has delivered.
Continue reading The Clorox Company stock analysis on Seeking Alpha.
Also, check out other stock analyses at my Stock Analysis page.
- Is Procter & Gamble A Value Play?
Volatility has spiked over the last week with large swings in share prices both lower and higher. This could lead some to take up defensive positions for their portfolio. That means consumer staples and how many consumer staples can spout a 59 consecutive...
- Filling Your Portfolio With The J. M. Smucker Company
At this point I don't think anyone has escaped notice that the markets have been on a whirlwind over the past week with the DJIA dropping almost 1,100 points in early trading Monday morning. However, that just means that excellent companies are offering...
- Does The Coca-cola Company Still Have The Recipe For Out-sized Returns?
There's no mistake that one of the greatest wealth creators of the last century is The Coca-Cola Company (NYSE:KO). With 20 different beverage brands generating over a billion dollars in annual revenues they are the envy of plenty of companies. Especially...
- Sweetening Your Portfolio With The Hershey Company Dividends
The Hershey Company (NYSE:HSY) has a rich history of rewarding shareholders with growing profits and increasing dividends. The Hershey Company gets overlooked to their short dividend growth streak of 5 years after holding the dividend steady during the...
- Now's Not The Time For Mccormick & Company, Inc.
I mentioned in my dividend growth checkup that my plan for the year was to allocate less capital to the consumer staples due to their general overvaluation. However, that doesn't mean that I won't identify excellent companies with large moats...