After spending more than a year at nothing better than a four-star rank, Clorox
With economic recovery still uncertain, many CAPS members are taking comfort in blue-chip dividend payer Clorox. The company recently blew past analysts' earnings expectations, posting another quarter of year-over-year growth. It also recently raised its dividend for the 33rd straight year, keeping itself among the ranks of other longtime dividend hikers -- diversified products company 3M
The competitive environment has been tough in the household products sector, though, as retailers like Wal-Mart
Clorox has used product promotions to boost sales in response to the generic competition, but still managed 7% earnings-per-share growth in its fiscal third quarter, a clean break from the earnings decreases of competitors Procter & Gamble
Many CAPS members see the stock as a strong defensive play in a period of low confidence, and don't expect to hit a home run with the investment. But with a rising dividend and fairly stable business, investors like the long-term potential of the company and see it as a good stock to own.
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