Clorox raises dividend for 41st consecutive year

Clorox 2018 dividend increase
Dividend Aristocrat Clorox (CLX) will raise its dividend for the 41st consecutive year in 2018. The quarterly dividend will be increased by 14.2 percent to $0.96 per share and comes after just three quarters since the last dividend hike.

The new dividend is payable May 11, 2018, to stockholders of record as of the close of business on April 25, 2018. This is an accelerated declaration of the company's dividend increase, which has typically taken place in the month of May. Last year Clorox hiked its dividend by 5 percent.

"We've been looking forward to putting tax reform benefits to work, with an emphasis on supporting long-term business growth and rewarding our shareholders," said Chairman and CEO Benno Dorer. "We're very pleased to accelerate our dividend announcement, which reflects a 14 percent increase in our quarterly dividend."

Chief Financial Officer Steve Robb added, "Consistent with our disciplined approach to cash allocation, shareholders remain a priority, and we're pleased to be in a position to continue to return excess cash to them."

Total annual dividends paid to Clorox shareholders have increased each year since 1977. In the last three fiscal years, Clorox delivered total shareholder return(2) of 58 percent, compared to 37 percent for its peer group(3) and 31 percent for the S&P 500.

Based on a stock price of $128.53 Clorox currently has an estimated dividend yield of 3.0%. Year-to-date the stock has lost 13.6%, giving Clorox a $16.6 billion market cap.

Out of 17 analysts only 2 rate Clorox a buy at the moment, with 15 'hold' recommendations and no 'sells'. The average target price is $140.14 (9% above Tuesday's closing price).

The Clorox Company is a manufacturer and marketer of consumer and professional products. The Company's principal products include household cleaning and bleach products, charcoal, cat litter, automotive care products, dressings, and trash bags. Its brands include Pine-Sol cleaners; Liquid Plumr clog removers; Poett home care products; Fresh Step cat litter; Glad bags, wraps and containers; Kingsford charcoal; Hidden Valley dressings and sauces; Brita water-filtration products; Burt's Bees natural personal care products; and Renew Life digestive health products.

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