The Motley Fool·2026-01-17 09:25Core Viewpoint - The article discusses consumer stocks that are positioned for significant stock recovery and continued dividend growth, emphasizing the importance of dividend investing over growth investing [1][2]. Clorox - Clorox is known for its bleach and owns other brands like Pine-Sol and Burt's Bees, benefiting from increased cleanliness demand during the COVID-19 pandemic [3]. - The stock has lost about 50% of its value over the last five years due to inflation, a cyberattack, and ERP software transition challenges [3]. - Clorox's current market cap is $13 billion, with a stock price of $109.98 and a dividend yield of 4.47%, supported by a consistent annual payout increase for 49 years [4][5]. - The investment in ERP software is expected to enhance efficiency, and the stock's P/E ratio of 17 suggests potential for dividend growth and stock price recovery [6]. Target - Target operates approximately 2,000 stores across the U.S. and has faced challenges such as rising inventories and falling sales post-pandemic [7][8]. - The stock has started to recover from its November low, with a current price of $111.14 and a dividend yield of 4.06%, marking it as a Dividend King with 54 years of payout increases [10]. - Target's P/E ratio is 13, significantly lower than competitors like Walmart and Costco, which trade at 42 and 51 times earnings, respectively, indicating potential for stock price recovery alongside rising dividends [11].