Key Highlights

● Clorox lifted its quarterly dividend to $1.25 per share from $1.24 on 31 July 2026.

● Shares closed at $83.80 on 9 October 2026, giving a trailing dividend yield of 5.93%.

● Fiscal 2026 diluted earnings of $4.81 per share were below the $4.96 paid in dividends.

● Fiscal 2027 guidance of $5.70 to $6.00 implies a payout of roughly 83% to 88%.

Payout cover matters at The Clorox Company (NYSE:CLX) because the dividend has just been raised while earnings have fallen. The board lifted the quarterly payment to $1.25 per share from $1.24 on 31 July 2026, yet fiscal 2026 diluted earnings per share of $4.81 were below the $4.96 per share paid in dividends over the same year.

The yield and the payments

Using a closing price of $83.80 on 9 October 2026, Clorox's trailing dividend yield is 5.93%. That is the sum of three quarterly payments of $1.24 and one of $1.25, a total of $4.97 per share, with ex-dividend dates from 10 October 2025 to 9 October 2026 inclusive: 22 October 2025, 28 January, 22 April and 12 August 2026. No special dividends were paid in the window. Another market-data source quotes $83.75 for the same close, which does not change the rounded yield.

On 23 September 2026 the company declared a further regular quarterly dividend of $1.25, with a record date of 28 October and payment on 13 November 2026. Annualised at four payments, that is $5.00, an indicated regular yield of 5.97% at the same price.

Business and earnings

Clorox makes household and consumer products. In fiscal 2026, to 30 June 2026, net sales were $6,720 million, down 5%, and net earnings attributable to the company were $587 million. Diluted earnings per share fell to $4.81 from $6.52. Cash from operations dropped to $612 million from $981 million, while dividends took $602 million, so reported operating cash flow barely covered the payout. The company's adjusted free cash flow of $881 million gives a wider cushion.

Coverage and guidance

Fiscal 2027 guidance, reported after the 3 August 2026 results, points to earnings per share of $5.70 to $6.00 and revenue of $7.6 billion to $7.7 billion. Against the $5.00 annualised dividend, that implies a payout of roughly 83% to 88% of guided earnings. The chief financial officer was quoted as describing a payout of about 85% of net earnings as somewhat elevated relative to staples peers, while expecting annual increases to continue for now. Clorox itself cites a long history of regular payments and annual increases.

The balance sheet has also changed. The acquisition of GOJO Industries, now operating as Clorox Purell, completed in April 2026 for net consideration of $2,147 million, and a $476 million payment to end the Glad joint venture with Procter & Gamble (NYSE:PG) has been reported. Fiscal 2027 interest expense is guided to about $210 million, and management flagged inflation headwinds above $200 million, weighted to the second half.

Risks

The main risks are the stretched payout ratio, higher debt service, input-cost inflation and the integration of the GOJO business. A payout this high leaves less room if earnings undershoot guidance, although the board has chosen to raise the dividend rather than hold it. The share price has fallen sharply over the past year, which itself lifts the yield.

GOJO Integration and Earnings Delivery Decide Clorox's Payout Room

Next on the calendar are the 28 October ex-dividend date and, according to an unconfirmed market-data estimate, first-quarter fiscal 2027 results around 3 November 2026. The measures to follow are whether sales growth from GOJO and pricing translate into earnings in line with the $5.70 to $6.00 range, and how free cash flow compares with the dividend bill.