Dividend Aristocrat The Clorox Company (NYSE:CLX) will remain a member of the exclusive dividend club, after voting to raise its dividend for the 43rd consecutive year. Shareholders as of July 29 will be paid a $1.11 quarterly dividend on Aug. 14. The payout is a 5% increase.
Clorox can make this decision comfortably, as many of its products remain in high demand because of the COVID-19 pandemic. And this high demand is on display in a new way today. The company is partnering with United Airlines (NASDAQ:UAL) to keep hub airports sanitized.
Profitable and in demand
The Dividend Aristocrats are a select group of companies that have paid out quarterly dividends without fail, and have increased the payout every year for at least 25 years. Miss a payment or a raise, and you're out of the club. By raising its dividend, Clorox keeps its streak going.
The coronavirus creates strong demand for Clorox's consumer-staple products, and customers include everyone from individuals to airlines. United Airlines will use Clorox products to disinfect boarding gates and terminals initially just at the Chicago and Denver airports, before expanding at a later date. For United Airlines, it hopes partnering with a house-hold name cleaning product will boost customer confidence to resume flying.
Clorox's sales increased 15% in the third quarter of fiscal 2020, as consumers gravitated toward disinfecting products. This led to an impressive 31% increase in quarterly net earnings per share.