Colgate-Palmolive (CL) , Clorox (CLX): Consumer Staples With Compelling Dividend Growth

I can virtually guarantee that you’ve used a product made by either Colgate-Palmolive (CL) or Clorox (CLX) in the past 24 hours.
These two companies produce some of the most popular household goods on the planet, including Irish Spring soap, Colgate toothpaste, Speed Stick deodorant, Palmolive dish detergent, Brita water filters, Glad garbage bags, Fresh Step kitty litter, and Tilex bathroom cleaner.
And given the ubiquity of their brands, it’s no surprise that investors feel comfortable owning the companies’ stocks. On top of that, Colgate-Palmolive and Clorox are both S&P 500 Dividend Aristocrats.
So what’s not to like about these consumer staples giants?
Plenty, as it turns out…

As you can see in the table above, CLX has a solid dividend yield of 2.8%. However, the company has increased its shares outstanding by 2% over the past 12 months, giving it a measly total yield (dividend yield plus one-year net buyback percentage) of 0.8%. CL’s total yield is also lackluster.  (more)

Please share this article