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.
Do you think Clorox deserves its five-star status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.
Many solid companies that pay great dividends have made the recommended list of the Motley Fool Income Investor service. To see all the dividend-paying stocks that have the service beating the market by more than 7 points on average, take a free 30-day trial.
Fool contributor Dave Mock is looking to upgrade his artistic skills with a weekend class in ice sculpting. He owns shares of 3M and Colgate-Palmolive. 3M and Wal-Mart are Inside Value recommendations. Clorox, Kimberly-Clark, and Procter & Gamble are Income Investor picks. The Fool owns shares of Procter & Gamble. The Fool's disclosure policy did a short stint as a stunt double for Mr. Clean.