Clorox (NYSE: CLX) boosted its dividend for the 48th consecutive year last July. Clorox has yet to announce another raise, but it remains on track to achieve the sought-after 50-year dividend streak in 2027, which would make it a Dividend King.
Clorox’s rising dividend, paired with its falling stock price, has pushed its yield to a multi-decade high of 5.7%.
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Here’s why Clorox remains committed to its dividend despite challenges in its underlying business, and why the value stock is a great buy now.
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Private label is a growing concern
An ongoing theme in the household and personal products industry is that private-label brands like Costco Wholesale‘s Kirkland Signature, Walmart‘s Great Value, and Sam’s Club’s Member’s Mark are gobbling up market share from name brands.
Clorox CEO Linda Rendle said the following on Clorox’s third-quarter fiscal 2026 earnings call on May 1: “But overall, private label just hasn’t had the impact that many would have expected. And I know many of you are asking questions about that. We’ve continued to see it play the role that it normally does, which is offering a low price for those consumers who need it.”
Clorox said that private-label market share remained flat in its quarter, as consumers continue to shop for high-quality brands. “But generally, consumers continue to want brands, and they continue to want value overall, not just the lowest price,” said Rendle.
Private label is far from Clorox’s only concern. The company is facing pressure from competitors’ promotions and discounts, especially in the food category. Clorox is using product innovation, preferred shelf placement, and marketing efforts to help offset these pressures. But the business is clearly being affected, as Clorox now forecasts a 9% decline in full-year fiscal 2026 organic sales…
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