Clorox Stock (CLX): Price, Dividend, ERP Impact, Brands & 2026 Outlook
CLX is the NYSE ticker symbol for The Clorox Company — one of America's most recognized consumer products companies, with household names including Clorox bleach, Pine-Sol, Glad, Hidden Valley Ranch, Burt's Bees, Brita, Kingsford charcoal, and Fresh Step cat litter. Clorox is a Dividend King — having increased its dividend for 50 consecutive years — and is historically a defensive income stock favored in uncertain markets. However, the company is navigating a uniquely turbulent period in 2025–2026: the combined aftermath of a major 2023 cyberattack and an ambitious ERP (Enterprise Resource Planning) digital transformation that is compressing near-term earnings significantly. Understanding exactly what is temporary disruption vs. structural change is the central question for any CLX investor today.
What Is Clorox (CLX) Stock?
The Clorox Company (NYSE: CLX) is a multinational consumer goods company headquartered in Oakland, California. Founded in 1913 as the Electro-Alkaline Company, Clorox has grown from a single bleach product to a diversified portfolio of approximately 25+ major brands sold in over 100 countries. It is a component of the S&P 500 index and is classified within the Consumer Staples sector — a defensive sector characterized by relatively stable demand regardless of economic cycles, since consumers continue buying cleaning products, food condiments, and personal care items even in recessions.
Clorox's four primary business segments are:
- Health & Wellness (38% of revenue): Home care and disinfecting products — Clorox bleach and disinfecting wipes, Pine-Sol, Formula 409, Liquid-Plumr, Tilex, S.O.S. scrubbers. Also professional products via CloroxPro, Clorox Healthcare, and Hidden Valley Ranch (U.S. foodservice).
- Household (28% of revenue): Cat litter (Fresh Step, Scoop Away, Ever Clean), bags and wraps (Glad), and grilling products (Kingsford charcoal and accessories).
- Lifestyle (18% of revenue): Food products (Hidden Valley dressings, KC Masterpiece BBQ sauces, Soy Vay), natural personal care (Burt's Bees), and water filtration (Brita — Americas).
- International (15% of revenue): Products across all above categories sold outside the U.S., with meaningful exposure to Latin America and Australia.
What makes CLX distinctive among consumer staples stocks is the combination of: (1) exceptionally strong brand recognition in household cleaning — a category where trust is hard to displace, (2) a 50-year dividend increase streak cementing Dividend King status, and (3) a uniquely disrupted 2023–2026 period involving a major cyberattack and ERP modernization simultaneously, which creates an unusual investment debate: is this a temporarily impaired Dividend King trading at a discount, or is the underlying business more structurally challenged?
For context on how consumer staples companies like Clorox fit within U.S. equity market sector classifications, InvestSnips covers all 11 GICS sectors and sub-industries across U.S. exchanges, including how sector membership affects typical financial metrics and income characteristics.
CLX Financial Snapshot: Key Metrics (FY2025–2026)
Clorox's fiscal year ends June 30 (so FY2026 = July 2025 – June 2026). The table below reflects reported results through Q2 FY2026 (December 31, 2025) and full-year FY2026 guidance confirmed February 3, 2026.
| Metric | Value / Data | Context / Notes |
|---|---|---|
| NYSE Ticker | CLX | S&P 500 component; Consumer Staples sector (GICS: Household Products) |
| Market Cap (Feb 2026) | ~$14–15 billion | Mid-large cap; smaller than PG (~$395B) but stable brand moat |
| FY2026 Net Sales Guidance | –6% to –10% YoY | ERP reversal drag (~7.5 pts organic), VMS divestiture, FX headwinds |
| FY2026 Organic Sales Guidance | –5% to –9% | Underlying demand broadly stable; decline is largely ERP-related timing |
| FY2026 Diluted EPS Guidance | $5.60 – $5.95 | ~29–32% decline vs. FY2025; ERP transition costs ~$0.90 EPS headwind |
| FY2026 Adjusted EPS Guidance | $5.95 – $6.30 | ~18–23% decline vs. FY2025 on adjusted basis; consensus ~$5.92 |
| Q2 FY2026 Revenue | $1.67 billion | –0.8% YoY; beat consensus of $1.64B; partial ERP normalization |
| Q2 FY2026 EPS | $1.39 | Missed consensus of $1.43; ongoing ERP transition expense |
| Q1 FY2026 Revenue | $1.43 billion | –19% YoY; acute ERP transition impact (retailer inventory drawdown) |
| FY2026 Gross Margin Guidance | –50 to –100 bps YoY | Target: ~44%; productivity initiatives partially offset cost pressures |
| Annual Dividend (2026) | $4.96/share ($1.24/qtr) | 50 consecutive years of increases; Dividend King status |
| Forward Dividend Yield | ~4.0–4.3% | Competitive for consumer staples; above-average for the sector |
| Dividend Payout Ratio | ~60–81% trailing; ~70% forward | Elevated vs. historical; forward coverage based on guided ~$5.92 EPS |
| Trailing P/E (TTM) | ~20.0–20.7x | Below PG (~24x), CL (~36x TTM), CHD (~30x); discount reflects ERP disruption |
| Forward P/E (FY2026E) | ~15.7–20.6x | Depends on EPS timeframe used; forward 5yr avg estimated ~16.6x |
| Analyst Price Target (median) | ~$121 (range: $94–$163) | 27 analysts; consensus "Hold/Neutral"; stock ~$118–125 range in Feb 2026 |
| FY2026 EBIT Margin Target | +25–50 bps expansion (FY2027 start) | Annual EBIT margin expansion plan post-ERP; driven by productivity + ERP benefits |
| Digital Transformation Budget | ~$500M over 5 years | ~$60M/year in digital capabilities and ERP; benefits materializing within 1–2 years |
Sources: Clorox Q2 FY2026 earnings release (Feb 3, 2026), PR Newswire, MarketBeat, GuruFocus, TickerNerd. Data as of early 2026. Financial metrics are dynamic — verify at Clorox Investor Relations (thecloroxcompany.com/investors) and SEC EDGAR. Not investment advice.
Clorox Brand Portfolio & Business Segments
Clorox's competitive moat is its portfolio of trusted household brands — products that dominate grocery and e-commerce shelves in categories where consumer trust and habit drive purchasing decisions. Below is a breakdown by segment:
Health & Wellness — The Core Engine
This is Clorox's largest segment (~38% of revenue) and its most iconic. The Clorox bleach brand alone has been the #1 disinfecting bleach in the U.S. for decades, with brand recognition that creates nearly automatic shelf selection from habitual shoppers. During COVID-19, this segment surged dramatically as disinfection became a national priority — creating a "COVID hangover" in subsequent years as consumers destocked pandemic purchases, a phenomenon that has largely normalized by 2025.
- Clorox bleach, disinfecting wipes, cleaning sprays — Market leader in household disinfection
- Pine-Sol — Multi-surface cleaner; #2 or #3 in its category depending on region
- Formula 409, Tilex, Liquid-Plumr — Specialized cleaners for various surfaces
- S.O.S. — Steel wool cleaning pads; a durable niche brand
- CloroxPro / Clorox Healthcare — Professional/institutional cleaning segment; growing with healthcare system demand for EPA-registered disinfectants
- Hidden Valley Ranch (foodservice) — The #1 ranch dressing in U.S. foodservice
Household Segment — Consistent Cash Generators
- Glad — Bags, wraps, and containers; a dominant brand in a highly competitive commodity category, differentiated by specific features (OdorShield, ForceFlex technology)
- Fresh Step / Scoop Away / Ever Clean — Cat litter; a growing category with strong recurring purchase behavior. Pet ownership and premiumization (clumping, lightweight, multi-cat formulas) have driven steady growth
- Kingsford — Charcoal briquettes and accessories. A highly seasonal brand (summer grilling), but with deep consumer loyalty and premium extensions
Lifestyle Segment — Growth Potential + Burt's Bees Premium
- Hidden Valley Ranch (retail) — Ranch dressing, dips, and seasoning. The most recognized ranch brand in America; benefiting from flavor-forward food trends
- Burt's Bees — Natural personal care (lip balm, moisturizers, baby care). A premium-priced brand in the natural/sustainable beauty segment; key brand for younger demographics
- Brita — Water filtration pitchers and products in the Americas. Growing on hydration sustainability trends
GOJO Acquisition — Strategic Pivot to Professional Hygiene
VMS Business Divested
As part of portfolio rationalization, Clorox divested its Vitamins, Minerals, and Supplements (VMS) business (which included the NeoCell and Rainbow Light brands) in 2024. This divestiture reduced revenue modestly but was consistent with CLX's strategy of focusing on high-quality household brands where it has clear competitive advantages. The VMS divestiture accounts for a small negative impact on Clorox's FY2026 reported revenue guidance.
The ERP Transition & Cyberattack: What Happened & Why It Matters
The single most important context for understanding CLX's FY2026 financial performance is the combination of two operational disruptions — one external, one strategic — that have created an unusually compressed earnings period:
The 2023 Cyberattack — The Trigger
In August 2023, Clorox suffered a significant cyberattack that forced the company to take IT systems offline and revert to manual processes. The operational impact was severe:
- Production lines were disrupted; product availability fell across multiple categories for weeks
- Order processing and fulfillment were delayed significantly, causing retailer shortages
- Direct remediation costs: approximately $49 million by end-2023, with an additional $50–60 million in FY2024
- Total losses including lost revenue from disrupted production were estimated to exceed $400 million, with lost revenue alone approximately $380 million
- The cyberattack also disrupted Clorox's planned ERP upgrade, temporarily pushing it back
The ERP Digital Transformation — The Current Impact
Clorox is midway through a 5-year, ~$500 million digital transformation that includes a major ERP (Enterprise Resource Planning) system upgrade — essentially replacing aging operational software that manages supply chain, inventory, order management, and financial reporting. This is strategically the right investment (legacy ERP creates operational bottlenecks), but the transition creates a specific timing distortion:
- Before the ERP switch, retailers ordered incremental (advance) inventory in Q4 FY2025 to buffer against potential disruption during the system switchover
- This created an artificial pull-forward of revenue into FY2025
- In FY2026, those same retailers are now drawing down that surplus inventory without placing new orders — creating a "revenue air pocket" that management estimates reduces FY2026 organic sales by approximately 7.5 percentage points and EPS by approximately $0.90
- The ERP begins with Canada first, then rolls to the U.S. and international segments on a phased schedule
Timeline to Normalization
- Q3 FY2026 (March 2026): ERP reversal headwind begins to shrink as cycle-over-cycle comparisons become easier
- Q4 FY2026 / Q1 FY2027 (June–September 2026): ERP inventory drawdown impact largely lapped; organic sales expected to begin recovering toward flat/positive
- FY2027: Management targets return to EBIT margin expansion of 25–50 basis points per year; ERP benefits (lower operating costs, better inventory management, faster order processing) expected to materialize
CLX Dividend: 50-Year Dividend King Status, Yield & Safety
For income investors, Clorox's most compelling attribute is its Dividend King status — having increased its dividend every year for 50 consecutive years. This places CLX in an elite group of fewer than 60 publicly traded U.S. companies with such a record, alongside names like Coca-Cola, Procter & Gamble, and Johnson & Johnson.
Current Dividend Profile
- Quarterly dividend: $1.24/share (confirmed most recently with ex-dividend date April 23, 2026, payment date May 8, 2026)
- Annual dividend rate: $4.96/share
- Forward dividend yield: ~4.0–4.3% at prevailing prices (~$115–125/share range in early 2026)
- Consecutive years of dividend increases: 50 (as of 2026)
Dividend Safety Assessment — The Critical 2026 Question
At the FY2026 guided adjusted EPS midpoint of ~$6.13, the $4.96/share annual dividend implies a payout ratio of approximately 81% — elevated and less comfortable than the 60–65% typical for consumer staples Dividend Kings. This has prompted some analyst concern about whether CLX can continue its growth streak if elevated payout persists.
However, several factors support dividend safety in 2026:
- The ERP-related EPS compression is explicitly temporary — the $0.90 EPS headwind disappears once the inventory drawdown cycle completes by mid-FY2026
- Free cash flow generation has remained robust — CLX's dividend is funded by cash flow, not accounting earnings, and cash flow has been maintained better than GAAP EPS suggests
- Management has shown zero indication of considering a dividend cut — the 50-year streak is an explicit strategic priority. Cutting the dividend would immediately disqualify CLX from Dividend King status and arguably destroy the investment thesis for Clorox's core income investor base
- The forward payout ratio based on normalized FY2027 earnings expectations is closer to 65–70% — more sustainable
The dividend has survived the 2008 financial crisis, the COVID-19 lockdowns, a major cyberattack, and now the ERP transition — without a cut. The risk of a cut in FY2026 is low but not zero, and investors should monitor quarterly earnings guidance updates closely.
For investors tracking Clorox's dividend in the context of the broader consumer staples income landscape — including how CLX compares to other Dividend Kings and Dividend Aristocrats across U.S. equity markets — InvestSnips tracks sector-level income characteristics across all U.S. equity industries.
CLX Dividend Income Estimator (Interactive)
Estimate potential dividend income from a Clorox position. Based on the current annual dividend rate of $4.96/share ($1.24/quarter). Simplified educational model — dividends are not guaranteed. Not financial advice.
🧹 CLX Dividend Income Estimator
Estimate annual and monthly dividend income from a CLX holding. CLX currently pays $1.24/quarter ($4.96/year) per share — 50 consecutive years of dividend increases. Not financial advice.
* Dividends are not guaranteed and may be reduced or eliminated. Clorox has not cut its dividend in 50+ years but past streaks do not guarantee future payments. Dividends are paid quarterly in approximately February, May, August, and November. Tax treatment varies by account type and jurisdiction.
CLX Valuation: P/E vs. PG, CL, CHD Peer Comparison
Clorox's current valuation relative to consumer staples peers is important context for evaluating whether CLX is fairly priced given its ERP-distorted near-term earnings:
| Company | Ticker | Trailing P/E (TTM) | Forward P/E | Dividend Yield | Market Cap | Key Strength | Key Risk |
|---|---|---|---|---|---|---|---|
| Clorox | CLX | ~20.0–20.7x | ~15.7–20.6x | ~4.0–4.3% | ~$14–15B | 50yr Dividend King; ERP creates cheap entry if temporary | ERP transition uncertainty; elevated payout ratio in FY2026 |
| Procter & Gamble | PG | ~23–25x | ~22–23x | ~2.4–2.7% | ~$380–400B | Unmatched scale; 65+ year dividend growth; global distribution | Limited valuation upside; premium already priced in; low yield |
| Colgate-Palmolive | CL | ~35–37x | ~20–25x | ~2.3–2.6% | ~$60–65B | Global toothpaste dominance; Hill's pet food growth engine | Expensive TTM multiple; EM currency exposure; pet food competition |
| Church & Dwight | CHD | ~29–35x | ~22–28x | ~1.3–1.5% | ~$20–22B | Arm & Hammer brand versatility; consistent organic growth track record | Premium valuation; lower yield; small-cap sensitivity |
| Kimberly-Clark | KMB | ~22–26x | ~18–20x | ~3.6–3.9% | ~$43–47B | Tissue/personal care defensiveness; Huggies + Kleenex brand moat | Commodity pulp cost exposure; private label competition in tissue |
| Sector Avg (S&P 500 Staples) | — | ~25.7x | ~20–23x | ~2.5–3.0% | — | Defensive; non-cyclical demand | Lower growth vs. other sectors; interest rate sensitivity |
P/E ratios approximate as of late February 2026. Sources: GuruFocus, FinanceCharts, Nasdaq, MarketBeat. Not a buy/sell recommendation. Verify all data at primary sources before making decisions.
Key Risks of Investing in Clorox Stock
1. ERP Transition Risk — What If It Goes Wrong?
ERP implementations are notoriously difficult — among the most complex IT projects a company undertakes. The ongoing SAP/ERP transition carries risks of customer service disruptions, order fulfillment delays, inventory inaccuracies, and extended project timelines that could push the earnings recovery further into FY2027 or beyond. The cyberattack that disrupted the original ERP plan (August 2023) is evidence that Clorox's IT environment carries execution risk. A significant ERP setback in FY2026 could erode both investor confidence and retailer relationships.
2. Dividend Sustainability Under Pressure
The FY2026 payout ratio of approximately 80%+ against guided EPS ($4.96 dividend / ~$6.13 EPS) is elevated. While free cash flow is more robust than GAAP EPS, and management has demonstrated commitment, investors should acknowledge that if earnings disappoint guidance significantly (e.g., EPS falls below $5.50), Clorox could face a genuine choice between protecting the 50-year streak and investing in business recovery. Any dividend cut would be a severe negative catalyst for the stock price.
3. Commodity Cost / Input Cost Inflation
Clorox's products rely on petrochemical-derived inputs (surfactants, plastics for packaging, resins for Glad bags), paper/pulp (S.O.S., paper products), and agricultural commodities (soy, spices). Commodity price spikes — driven by oil prices, supply chain disruptions, tariffs, or weather — can compress Clorox's gross margins rapidly. Management's pricing power (ability to pass cost increases to consumers via price hikes) is meaningful but limited in a competitive retail environment where private label alternatives compete aggressively.
4. Private Label / Generic Competition
In categories like cleaning concentrates, bags and wraps, and bleach, private label products from retailers (Target's Good & Gather, Walmart's Great Value, Costco's Kirkland) compete directly on price, often at 20–40% discounts. During inflation-driven consumer trade-down periods, Clorox risks losing shelf space and unit volume to lower-cost alternatives — compressing both volume and margin simultaneously.
5. Cybersecurity / Digital Risk
The 2023 cyberattack demonstrated that Clorox's operational systems are vulnerable to sophisticated threat actors. Despite remediation investments, the company — like all consumer goods manufacturers — remains a target. A second major incident during the ERP transition window would be particularly damaging, both financially and reputationally. Investors should consider this a material tail risk, though management has substantially invested in cybersecurity infrastructure post-attack.
6. Slower Organic Growth in a Mature Category
Household cleaning is a mature, slow-growth category in developed markets. Unlike technology, healthcare, or green energy, there is no secular growth tailwind driving Clorox's core business faster than population growth (~1–2% annually in the U.S.). Clorox's long-term organic growth ambition of 3–5% per year requires consistent execution in innovation (new products, format extensions) and international expansion — both of which face execution and competitive risk.
7. GOJO Acquisition Integration Risk
While strategically compelling, the GOJO (Purell) acquisition introduces integration complexity, potential goodwill write-down risk if synergies underdeliver, and immediate leverage on the balance sheet. Acquisitions in the consumer goods space have historically mixed track records. Given that Clorox is simultaneously navigating an ERP transition and post-cyberattack recovery, adding a major acquisition integration creates management bandwidth strain.
CLX 2026 Outlook: Catalysts, Guidance & GOJO Impact
Near-Term Bullish Catalysts
- ERP Headwind Lapping (H2 FY2026): The inventory drawdown effect begins anniversarying by Q3–Q4 FY2026, making year-over-year comparisons significantly easier and organic sales trends should visibly improve — potentially the biggest single re-rating catalyst for CLX in 2026
- Gross Margin Recovery Path: Management targets 44% gross margins and a return to annual EBIT margin expansion (+25–50 bps/year) beginning in FY2027. Any early evidence of margin recovery (e.g., Q4 FY2026 gross margin beats) would be bullish
- GOJO (Purell) Synergies: Purell brings substantial distribution and brand equity in healthcare and institutional channels — early evidence of cross-selling with CloroxPro could drive upside to segment revenue estimates
- Health & Wellness Segment Momentum: CloroxPro and Clorox Healthcare have shown consistent market share gains in the professional/institutional disinfection market — a structural growth driver tied to post-pandemic awareness of hygiene in healthcare settings
- International Recovery: International segment had shown improved trends in FY2025; continued execution in Latin American markets, lower FX headwind, and professional product launches provide upside
- ERP Efficiency Benefits: Once fully implemented, the ERP should reduce operational costs, improve inventory management precision, and enable faster response to demand signals — delivering meaningful long-term margin improvement that is not priced in at current valuations
Near-Term Headwinds
- ERP inventory reversal continuing to weigh on Q3 FY2026 organic sales and EPS
- Elevated selling and administrative expenses (~16% of net sales) during the transformation
- Lapping cyberattack insurance recoveries means FY2026 includes no benefit from prior-year insurance income
- Gross margin pressure of 50–100 bps in FY2026 from commodity cost and price/mix
- Continued uncertainty around GOJO acquisition integration costs and timeline
How to Evaluate CLX as an Investment
Given Clorox's unique transitional situation, standard P/E comparison tells only part of the story. Here is a framework for evaluating whether CLX fits a given investment objective:
| Investor Type | Relevant CLX Attribute | Bullish Signal | Risk to Monitor |
|---|---|---|---|
| Income / Dividend Investor | 4.0–4.3% yield; 50yr increase streak | Yield at upper end of historical range; covered by FCF | Payout ratio 80%+ in FY2026; any EPS miss widens strain |
| Defensive / Recession Investor | Consumer staples; essential products | Demand for cleaning/food products stable in downturn | Private label substitution accelerates in deep recessions |
| Value / Contrarian Investor | ERP-depressed EPS creates cheap-vs-normal entry | 15–17x forward P/E on normalized ~FY2027 earnings | Recovery timeline extends if ERP/GOJO integrations slow |
| Growth Investor | Low organic growth (3–5% targeted) | Hidden Valley, Burt's Bees, Brita in growing categories | Mature core categories; limited upside vs. growth stocks |
| ESG / Sustainability Investor | Burt's Bees natural; Brita water conservation | Burt's Bees brand commitment to natural ingredients; Brita reduces plastic bottles | Chemical cleaning products; plastics in Glad; supply chain carbon footprint |
For dividend investors specifically, InvestSnips provides context on how consumer staples sector yields compare across all U.S. equity market sectors, which can help benchmark CLX's 4%+ yield against alternative income opportunities.
For investors researching CLX in the context of broader consumer basket ETFs — such as XLP (Consumer Staples Select Sector SPDR) which holds CLX as a constituent — InvestSnips covers ETF structures across all major U.S. equity categories.
Summary & Key Takeaways
- 📌 CLX = NYSE: The Clorox Company. Consumer staples giant with iconic brands (Clorox, Pine-Sol, Glad, Hidden Valley, Burt's Bees, Brita, Kingsford, Fresh Step). ~$6.5B in consensus revenue expected for FY2026; S&P 500 component; Household Products sub-industry.
- 📌 Dividend King — 50 Consecutive Years of Increases. Current yield ~4.0–4.3% ($4.96/share/year, $1.24/quarter). Payout ratio elevated in FY2026 (~80%+) due to ERP-depressed earnings, but covered by free cash flow. No cut signaled by management.
- 📌 The ERP Story Defines 2026: FY2026 net sales guidance of –6% to –10% and adjusted EPS of $5.95–$6.30 (~18–23% decline) are largely driven by a one-time inventory timing reversal (~7.5 pts) and ERP transition costs (~$0.90 EPS). Not all of this is structural demand deterioration.
- 📌 GOJO Acquisition (Purell) = Strategic Expansion: The acquisition of GOJO Industries brings Purell — the dominant hand sanitizer brand in U.S. healthcare and institutional channels — into the Clorox portfolio, materially expanding professional hygiene capabilities alongside existing CloroxPro.
- 📌 Valuation at a Relative Discount: CLX's TTM P/E of ~20x is below sector average (~25.7x) and well below Colgate (~36x) and Church & Dwight (~32x). On normalized FY2027E earnings, the forward multiple could be ~15–17x — cheaper than most staples peers.
- 📌 Key Catalysts to Watch: ERP headwind lapping in H2 FY2026, GOJO integration execution, gross margin recovery toward 44%, Burt's Bees and CloroxPro growth trends, and the pace of organic sales recovery toward 3–5% by FY2027.
- 📌 Key Risks: ERP implementation setbacks, dividend payout ratio sustainability if earnings disappoint, commodity input cost inflation, private-label competition, and integration complexity from GOJO on top of ongoing ERP transition.
Frequently Asked Questions About Clorox Stock (CLX)
CLX is the NYSE ticker for The Clorox Company — a consumer goods company founded in 1913 and headquartered in Oakland, California. Clorox makes a diverse range of well-known household products including Clorox bleach and disinfecting wipes, Pine-Sol, Glad bags and wraps, Hidden Valley Ranch dressings, Fresh Step and Scoop Away cat litter, Burt's Bees natural personal care, Brita water filtration systems, and Kingsford charcoal. The company also recently acquired GOJO Industries, maker of Purell hand sanitizer. Clorox products are sold in over 100 countries and the company generates approximately $6–7 billion in annual revenues. It is classified within the Consumer Staples sector of the S&P 500 as a Household Products company.
Yes — Clorox is a Dividend King, having increased its dividend for 50 consecutive years as of 2026. This places it in the elite group of fewer than 60 publicly traded U.S. companies to achieve this milestone, alongside Coca-Cola, Procter & Gamble, and Johnson & Johnson. The current quarterly dividend is $1.24/share ($4.96/year), representing a forward yield of approximately 4.0–4.3% at early 2026 prices. While the 50-year streak is impressive, investors should note that the FY2026 ERP transition has elevated the payout ratio to approximately 80%+ of guided adjusted EPS — a level that requires monitoring. Historically, Clorox has maintained the dividend through multiple crises without a cut, but future dividend growth (not the current dividend level) could slow if earnings recovery takes longer than management projects.
Clorox's FY2026 financial results are being significantly impacted by a one-time ERP (Enterprise Resource Planning) system transition. Ahead of the system switchover, retailers ordered incremental inventory in Q4 FY2025 to buffer against potential disruption — artificially pulling forward revenue. In FY2026, those same retailers are now drawing down that surplus inventory without placing equivalent new orders, creating an "air pocket" in Clorox's shipments. Management estimates this ERP reversal reduces FY2026 organic sales by approximately 7.5 percentage points and EPS by approximately $0.90. This is explicitly identified as a temporary, non-recurring timing distortion — not a sign that consumers are buying fewer Clorox products. The operational disruption is compounded by the lingering aftermath of a 2023 cyberattack that delayed Clorox's original ERP timeline and added significant remediation costs (~$400M+ total impact). Most analysts expect the ERP headwind to begin normalizing in the second half of FY2026 (calendar late 2026).
As of early 2026, Clorox's forward dividend yield is approximately 4.0–4.3%, based on the $4.96/share annual dividend ($1.24/quarter) and stock prices in the $115–125 range. The sustainability question is nuanced: the ~80% payout ratio against FY2026 guided EPS is elevated versus historical norms (Clorox historically operates at 55–65% payout), but the dividend appears covered by free cash flow, and management has given no indication of reducing the dividend. On normalized FY2027 earnings (once the ERP headwind fully laps), Wall Street models suggest the payout ratio returns to approximately 65–70% — more comfortable. The key risk to dividend sustainability is a significant earnings miss versus guidance; if FY2026 adjusted EPS falls well below $6.00, the coverage ratio becomes thin. Investors should monitor each quarterly earnings report for any guidance revisions to the FY2026 EPS range. This is a general analytical observation — not personalized investment advice.
CLX and PG are both consumer staples Dividend Kings with strong household brand portfolios, but differ in several important ways. Procter & Gamble (PG) is dramatically larger (~$390B market cap vs. CLX's ~$14B), with over 65 years of consecutive dividend increases, and operates across personal care, fabric care, baby care, health care, family care, and home care globally — providing far greater diversification. PG has a forward P/E of ~22–23x vs. CLX's depressed ~16–20x, and a lower yield (~2.5%) vs. CLX's ~4.1%. For income investors, CLX currently offers a higher absolute yield; for dividend growth investors, PG's longer streak and larger scale may provide more confidence. CLX's near-term earnings are more distorted by the ERP transition than PG's; PG faces its own headwinds (FX, deceleration in emerging markets) but at a more stable clip. Neither is specifically recommended here — this is a general editorial comparison, not investment advice.
As of 2026, The Clorox Company owns approximately 25 major consumer brands across its four segments. Key brands include: Cleaning & Disinfection — Clorox (bleach, wipes, sprays), Pine-Sol, Formula 409, Liquid-Plumr, Tilex, S.O.S.; Professional — CloroxPro, Clorox Healthcare, and newly acquired Purell, Gojo, and Provon (via the GOJO Industries acquisition); Household — Glad (bags/wraps), Fresh Step, Scoop Away, Ever Clean (cat litter), Kingsford (charcoal); Food — Hidden Valley Ranch, KC Masterpiece, Soy Vay; Lifestyle & Personal Care — Burt's Bees (natural personal care), Brita (water filtration). The VMS segment (NeoCell, Rainbow Light vitamins) was divested in 2024 as part of portfolio simplification. Clorox's brand portfolio is concentrated in household categories with strong consumer loyalty and recurring purchase behavior.
Clorox confirmed its full-year FY2026 (year ending June 30, 2026) guidance on February 3, 2026: net sales –6% to –10% year-over-year; organic sales –5% to –9%; diluted EPS $5.60–$5.95; and adjusted EPS $5.95–$6.30. Gross margin is expected to decline 50–100 basis points. The significant EPS decline versus FY2025 is primarily driven by (1) the ERP inventory reversal (~7.5 pts organic sales headwind, ~$0.90 EPS headwind) and (2) lapping of prior-year cyberattack insurance recoveries. The consensus analyst EPS estimate for the fiscal year ending June 2026 is approximately $5.92. Revenue is expected to recover modestly longer-term, with consensus FY2026 revenue estimates around $6.50 billion. Always verify current guidance at Clorox's investor relations website (thecloroxcompany.com/investors) as guidance may be updated at each quarterly earnings release.
This is a general analytical observation, not personalized investment advice. The bull case for CLX in 2026 rests on three premises: (1) the ERP earnings headwind is temporary and laps by mid-FY2026, allowing earnings to normalize toward $7–8+ in FY2027; (2) the forward multiple on normalized earnings (~15–17x) represents a discount to consumer staples peers; and (3) the 4%+ yield compensates investors during the recovery period. The bear/skeptical case argues that: (1) ERP transitions often take longer and cost more than planned, extending the earnings depression; (2) the 80%+ payout ratio leaves limited safety margin; and (3) the GOJO acquisition adds integration risk simultaneously. Analyst consensus as of early 2026 is broadly "Hold/Neutral," with a median price target of approximately $121. Individual investors should consider their own income needs, risk tolerance, investment timeline, and existing portfolio diversification before making any investment decision.