In December 2025, The Clorox Company ($CLX) was trading for less than $100 per share. By March, it had rallied above $125. Today, it’s back under $100.

I liked this stock when it was cheap in December, and I like it again now.

Here’s why:

The Clorox Company was founded in 1913 and has a somewhat complicated corporate history, including a stint under Procter & Gamble in the 1950s. Despite that, it has grown from a $500 start-up into an approximately $12 billion company today.

Clorox has raised its dividend for 48 consecutive years. And despite something of a lost decade in the 2020s, it has actually kept pace with the S&P 500 over the long term. From the first trading day in January 1995 through today, Clorox has delivered an average annual total return of 9.13%. That’s only slightly below the SPDR S&P 500 ETF Trust ($SPY), which has returned 10.39% annually.

Even with Clorox down 22% over the past decade, its long-term returns still stack up against the S&P 500.

However, the S&P 500 is currently trading at all-time highs with a price to earnings ratio of 30.35, while Clorox trades at 17.02 and offers a 4.98% starting yield.

Clorox owns multiple recognizable household brands, including Clorox, Pine-Sol, Glad, Burt’s Bees, and Brita. These are recurring-purchase consumer products. Bleach, trash bags, and cleaning supplies are about as defensive as it gets, only outdone by essentials like toilet paper and utility serivices such as water and electricity.

While Clorox offers a high starting yield, its dividend growth has been slow.

The company’s 5-year compound annual dividend growth rate is just 2.39%, paired with a relatively high payout ratio of 75.30%. Personally, I can accept slower growth when the starting yield is close to 5%. Still, it would be nice to see earnings per share improve enough to widen the dividend’s margin of safety and support faster payout growth.

A payout ratio in the 65%–70% range, combined with 4% annual dividend growth, would be a healthier setup, especially with the stock yielding 4%–5%.

That’s hypothetical, though.

One reason Clorox has underperformed in recent years is the 2020 pandemic bubble, when earnings and valuation both spiked as demand for disinfectants surged. As that demand normalized, earnings followed. More recently, shares have sold off on concerns that rising oil prices will increase input costs and put pressure on Clorox’s margins. That’s a legitimate concern, but likely short-term.

Clorox is a 112 year-old business, it’s dealt with commodity cycles before.

Looking at the fundamentals, I like Clorox as a high-yield consumer staple. The company produces essential household goods, and once it works through its near-term headwinds, it has a reasonable path back to delivering long-term returns in-line with the S&P 500.

If that happens, buyers at current levels could benefit from both an enormous yield-on-cost and significant capital appreciation post-rebound.

At the moment, consumer staples are widely hated and out of favor.

There are many good deals within the sector right now, but Clorox is one of the highest yielding names.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.