NEW YORK, July 18, 2026, 15:06 EDT — U.S. markets have ended trading for the day.
- Clorox shares ended Friday at $96.32, falling 2.42%. The stock declined 0.25% over the week.
- Initial estimates show the present annualized dividend amounts to 88% to 91% of adjusted fiscal-year EPS guidance.
- The company’s next scheduled catalyst is the release of its results on August 3.
The Clorox Company NYSE:CLX ended Friday trading with an implied annualized yield of 5.15%, if the current $1.24 quarterly dividend is maintained. The earnings cushion remains slim.
Initial estimates show that four payments at the present rate would amount to $4.96, using up between 88% and 91% of adjusted fiscal-year EPS guidance. When compared to GAAP guidance, the payout ratio rises to about 100% to 104%.
At the revised midpoint, just 59 cents is left following the annualized payout. A 10-cent adjustment in EPS moves the payout ratio by roughly 1.6 percentage points.
Clorox ended Friday at $96.32, falling 2.42%, while the S&P 500 slipped 1.01%. The stock ended the week down 0.25%, breaking a two-session recovery streak on Friday.
Clorox shares are priced lower than those of several major consumer-staples competitors:
| Company | Friday close | Friday move | Trailing P/E |
|---|---|---|---|
| The Clorox Company NYSE:CLX | $96.32 | -2.42% | 15.6x |
| Procter & Gamble NYSE:PG | $149.98 | -1.00% | 21.9x |
| Colgate-Palmolive NYSE:CL | $92.98 | -1.16% | 36.0x |
| Church & Dwight (NYSE:CHD) | $98.07 | -1.06% | 32.3x |
Friday changes and trailing multiples are based on market data from July 17.
Clorox shares trade at 15.6 times trailing earnings, while each of its peers is valued above 21 times. Management is also forecasting a sales drop of roughly 6% for the fiscal year.
The operating record accounts for part of the difference. Third-quarter sales remained steady, with organic sales slipping 1%. Adjusted earnings per share increased 13% to $1.64.
The rise was partially driven by cost reductions along with decreased spending on advertising and overhead. “Our third-quarter results were mixed,” said Chair and CEO Linda Rendle. She pointed to weaker-than-anticipated market-share gains in some areas of the portfolio. The Clorox Company Investors
Cash generation declined, with operating cash flow year-to-date dropping 59% to $282 million. Clorox attributed most of the decrease to a Glad joint-venture termination payment.
Clorox anticipates a full-year gross margin decline of 250 to 300 basis points. The ERP inventory reversal is projected to cut EPS by approximately 90 cents. Organic sales are set to decrease by around 9%.
GOJO introduces additional complexity. The $2.25 billion acquisition, largely financed by debt, was completed on April 1 and brought Purell into the portfolio. Clorox projects a dilution of adjusted EPS by two to four cents, which factors in increased interest expense.
Clorox’s next scheduled catalyst is set for August 3, following the upcoming week. The company will release results at 4:15 p.m. EDT, with an analyst webcast to begin at 5 p.m.
The week of July 20 focuses primarily on positioning. Investors face the decision of whether the elevated yield offsets the restricted earnings headroom before the report.
Risks: A slower rebound in shares, increased factory expenses and GOJO interest costs may put pressure on earnings. Greater cost efficiencies or quicker integration of Purell would boost the dividend buffer.
Currently, the dividend draws attention while the earnings provide a limiting factor.
