The Clorox Company (NYSE:CLX) is included among the Best High Yield Stocks to Buy in October. Clorox’s (CLX) Dividend Appeal: A Defensive Play for October Capture Strategies The Clorox Company (NYSE:CLX) is a consumer products company that is best known for its bathroom and kitchen staples — household cleaners, disinfecting wipes, and bleach — alongside trash bags, grilling supplies, cat litter, and even condiments. The company derives approximately 80% of its sales from brands that hold the first or sec ...

The Clorox Company (NYSE:CLX) is included among the 10 Safest High Dividend Stocks to Buy Now. The Clorox Company’s (CLX) Dividend History Makes it a Leader in Safest High Dividend Stocks The Clorox Company (NYSE:CLX) is a consumer goods company recognized for its wide range of products, including household cleaners, disinfecting wipes, bleach, trash bags, grilling items, cat litter, and food condiments. Around 80% of its sales come from brands that rank first or second in their categories, based on FY24 ...

Core Viewpoint - Dividend-paying stocks are favored for their stability during market fluctuations and provide a steady income stream, with a preference for dividend growth stocks highlighted by Goldman Sachs [1][2]. Dividend Performance - Companies that initiate and consistently increase dividends have historically outperformed the broader market, with Dividend Growers and Initiators returning 9.62%, Dividend Payers at 8.78%, and companies with no dividend changes at 6.88% [2]. Shareholder Preferences - Established companies often face pressure from shareholders to distribute dividends, which signal genuine profits and provide a cash cushion during market declines, thus increasing demand for dividend-paying stocks [3]. Methodology for Stock Selection - The article utilized a Finviz screener to identify companies with at least 10 consecutive years of dividend growth, selecting those with dividend yields above 4% as of September 20 [6]. Company Highlights - **Kimberly-Clark Corporation (NASDAQ:KMB)**: - Dividend Yield: 4.04% - Known for personal care and tissue products, with a focus on product innovation and operational efficiency. The company has raised dividends for 53 consecutive years, currently paying $1.26 per share [9][11]. - **The Clorox Company (NYSE:CLX)**: - Dividend Yield: 4.08% - Recognized for a wide range of consumer goods, focusing on brand value, supply chain resilience, and product innovation. The company has declared a quarterly dividend of $1.24 per share and has increased dividends for 22 years [12][14].

Financial Data and Key Metrics Changes - The company experienced a decline in overall market categories, with average declines in the low single digits during the third quarter [14][22] - Despite the challenges, the company maintained market shares and achieved its tenth consecutive quarter of gross margin expansion [9][10] - The gross margin for the fourth quarter is expected to be around 44%, consistent with the annual average of approximately 44.5% [40] Business Line Data and Key Metrics Changes - The household products segment faced significant competitive pressure, leading to a decline in sales, particularly in the Glad brand due to increased promotional activity [96][100] - The cleaning category showed resilience, with the company growing market share despite overall category declines [86][111] - The cat litter segment is competitive, but the company has introduced innovations that are performing well in the market [100][101] Market Data and Key Metrics Changes - Consumer sentiment weakened significantly in the second half of the third quarter, impacting shopping behaviors and leading to lower-than-expected sales [8][9] - Retailers are adjusting their inventory levels, which has resulted in some destocking, particularly in the household segment [41][44] - The company noted a shift in consumer spending towards essentials and larger purchases, impacting discretionary categories [17][78] Company Strategy and Development Direction - The company aims to continue delivering organic sales growth and strong earnings growth while navigating a challenging consumer environment [10][120] - There is a focus on innovation and maintaining a balanced portfolio that caters to both premium and value-seeking consumers [55][111] - The company is actively managing its supply chain and pricing strategies to mitigate the impact of tariffs and maintain margins [32][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their essential product categories despite current economic uncertainties [9][23] - The outlook for fiscal year 2025 anticipates continued challenges, with organic sales growth expected to be muted [27][92] - The company is closely monitoring consumer behavior and market dynamics to adapt its strategies accordingly [23][120] Other Important Information - The company is preparing for an ERP transition, which is expected to enhance operational efficiency and inventory management [61][65] - There is a wide range in the sales outlook due to the volatility in consumer demand and retailer inventory adjustments [62][66] Q&A Session Summary Question: What is driving the category weakness? - Management noted that while categories are traditionally resilient, recent macroeconomic uncertainties have led to a low single-digit decline in sales [14][22] Question: How should we think about organic sales growth in the long term? - The company expects organic sales growth to be suppressed in the near term but anticipates a return to normal category growth over time [27][28] Question: What is the expected impact of tariffs on gross margin? - The anticipated gross impact from tariffs is around $100 million annually, with efforts underway to mitigate this through various strategies [31][32] Question: Can you provide insights on promotional activity by category? - Promotional activity has normalized overall, but some categories, like Glad, are experiencing higher promotional pressures due to competitive actions [50][51] Question: How is the ERP transition expected to impact sales? - The ERP transition is expected to lead to a build-up of inventory, which could translate into growth in the following quarters [65][66] Question: What is the company's approach to M&A in the current environment? - The company remains focused on strengthening its core business while exploring opportunities for portfolio improvement through M&A [120]