The Clorox Company
), known for its shareholder-friendly moves, recently raised its
quarterly dividend by 11% or 7 cents to 71 cents per share.
Earlier, the company used to pay 64 cents per share.
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The new dividend will be paid on Aug 9, 2013 to shareholders of
record as of Jul 24, 2013. The hike in dividend now brings the
company's annualized dividend rate to $2.84 per share. Based on
the current stock price, the increased dividend, results in yield
Previously, on May 14, 2012, Clorox raised its dividend to 64
cents from 60 cents per share, indicating an increase of 6.7%.
Clorox has been enhancing shareholder return from time to time.
The company has a track record of consistently raising annual
dividends every year since 1977. Taking a decade-long view, the
company has successfully increased its dividend by nearly 69%
from 22 cents paid in Feb 2003, to 71 cents announced recently.
We believe that Clorox's consistent dividend payments and
increments reflect the growth potential of the company's earnings
as well as its cash flow generation capabilities.
Though Clorox's third-quarter 2013 results were slightly
disappointing when compared with the prior-year period and the
Zacks Estimate, the company continued to maintain a solid balance
sheet alongside improved cash flows. This Zacks Rank #3 (Hold)
company's third-quarter earnings came in at $1.00 per share
compared with $1.04 in the comparable period last year and the
Zacks Consensus Estimate of $1.06 per share.
On the other hand, Clorox ended the quarter with cash and cash
equivalents of $423 million. During the first 9 months of fiscal
2013, the company generated $486 million net cash from
operations, marking an increase of $153 million from the year-ago
Looking ahead, the company lowered its annual sales growth
guidance for fiscal 2013 to 3%-4%, against the company's previous
guidance range of 3%-5%, on account of reduced charcoal sales due
to adverse weather conditions. However, Clorox continues to
anticipate annual earnings of $4.25-$4.35 per share in fiscal
Additionally, the company, which competes with
Church & Dwight Company Inc.
Proctor & Gamble Company
), provided its fiscal 2014 guidance, projecting sales growth in
the range of 2%-4%. The company anticipates fiscal 2014 earnings
per share to be in the range of $4.55- $4.70.