1 Top High-Yield Dividend Stock I'd Buy Without Hesitation in December

Core Viewpoint - Clorox, a Dividend King, is currently facing challenges but presents a strong investment opportunity due to its high dividend yield and potential for recovery [1][12][17] Group 1: Company Challenges - Clorox has experienced a nearly 60% decline from its peak stock price due to multiple issues, including increased production costs, inflation, and a severe cyberattack in 2023 that cost approximately $380 million [1][5][6] - The transition to new enterprise resource planning (ERP) software has also contributed to operational disruptions, impacting revenue and earnings [6][12] Group 2: Business Performance Indicators - Despite recent struggles, Clorox's revenue and profits have shown improvement since 2024, with a notable rebound in return on invested capital (ROIC), currently at 25%, aligning with pre-pandemic levels [7][9] - Clorox's product innovation and strong brand reputation help maintain its competitive edge, despite the commoditized nature of some of its products [10][11] Group 3: Dividend and Valuation - Clorox boasts a current dividend yield of nearly 5%, the highest in its history, and has a dividend payout ratio of 72% of next year's earnings estimates, which is manageable given its strong balance sheet [12][14] - The stock is currently undervalued with a price-to-earnings ratio of less than 15, suggesting potential for capital gains as the company regains market trust [16]