"The Clorox Company just paid investors $1.24 per share on February 13, 2026, marking the latest payment in a 48-year streak of consecutive dividend increases. But the Dividend King's crown sits uneasily on a company navigating operational turbulence and margin pressure that raises questions about whether this 4.07% yield compensates investors for the risks ahead. Clorox's dividend earns a B- grade on sustainability metrics, reflecting adequate but not exceptional coverage ratios."
"The company generated $981 million in operating cash flow for fiscal 2025, covering the $602 million dividend payout at a 61.4% payout ratio. Free cash flow of $761 million provided 1.26x coverage after capital expenditures. These figures represent a meaningful recovery from fiscal 2024's concerning 85.6% payout ratio, when operating cash flow collapsed to $695 million - the lowest level in five years."
"The dividend itself has grown steadily, increasing 33.8% from $450 million annually in fiscal 2018 to $602 million in fiscal 2025, representing a compound annual growth rate of approximately 5.2%. Recent quarterly payments have stabilized at $1.24, up from $1.22 in the first half of 2025. Clorox's 4.07% dividend yield stands well above household products peers Procter & Gamble's 2.63% and significantly above Kimberly-Clark's 4.76%."
Clorox paid $1.24 per share on February 13, 2026, continuing a 48-year run of dividend increases and producing a 4.07% yield. Fiscal 2025 operating cash flow reached $981 million, covering the $602 million dividend at a 61.4% payout ratio, while free cash flow of $761 million provided 1.26x coverage after capex. Fiscal 2024 showed a sharp decline in cash flow and an 85.6% payout ratio, the only year in five when free cash flow failed to cover the dividend. Dividend payments have grown 33.8% since 2018, but elevated yield reflects skepticism amid operational and margin challenges.
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