I remembered Clorox, this brand since I was 5 years old, watching my grandma used it to bleach dirty socks. Ever since then, the strong effective bleaching product has planted a deep image in my heart.
Clorox was founded in 1913, which is 104 years ago. It was listed on New York Stock Exchange on 1968, and listed on Standard and Poor 500 on 1969.
During the 70s and 80s, Clorox underwent very aggressive expansion by acquiring several brands.
In 1999, after the company acquired First Brand (former consumer production of Union Carbide), Clorox almost doubled its size.
Clorox has just given out their latest dividend at $0.84 per share.
dividend yield 2.55%.
Since 1977, with an unbroken of 40 year streak of annual dividend raise, Clorox is certainly a dividend king.
Clorox had 4 stock splits, the earliest date we can trace back was year 1972.
Nov 16, 1972 -- 2/1 Stock Split
June 02, 1987 -- 2/1 Stock Split
Sep 03, 1997 -- 2/1 Stock Split
Aug 24, 1999 -- 2/1 Stock Split
The earliest stock price of Clorox we can trace was on year 1984, before that, we didn't have any digital record for the stock price.
Well, we still will calculate the assumption of initial investment and the and result.
Assume that I bought 1,000 share of Clorox on 1st of November, 1972:
After the stock split on Nov 16, 1972, my 1,000 shares would become 2,000 shares.
After the stock split on Jun 02, 1987, my 2,000 shares would become 4,000 shares.
After the stock split on Sep 03, 1997, my 4,000 shares would become 8,000 shares.
After the stock split on Aug 24, 1999, my 8,000 shares would become 16,000 shares.
It is so exciting to see the figures grew from 1,000 shares to 16,000 shares after 26 years of holding.
If the stock price was $6.88 on June 01, 1987, it means that during that time I would have 2,000 shares of Clorox trading at $6.88, equaled to $13,760.
In Aug 25, 1999, after the 4th stock split, I would have 16,000 shares trading at 44.38, equaled to $710,080!!!
How about current price?
To make it simpler, we round it up to $133 per share(Clorox traded at $133.43 on Jul 26, 2017).
16,000 shares x $133 = $2,128,000
Wow, I would become a multi-millionaire just by buying 1,000 shares of Clorox stock on 1972, do nothing and hold them until today!!!
This is not included the dividend I enjoyed throughout the 45 years!!!
Despite the uncertainty & growing competitive global business environment, Clorox the consumer products giant is able to maintain a steady growth sales, and sustain its dividend growth each year.
Consumer products industry is at a very mature state, normally it is difficult for companies in this industry to expand their market share and achieve business growth. In order to breakthrough from the bottleneck, technology innovation or launching successful new products plays an important role.
For example, the disinfecting wipes launched by Clorox is very popular and achieves a high demand among the consumers.
Healthy cashflow and earnings helped secure its dividend growth. Clorox is also well managed.
It invests in acquisition when it comes across suitable target. By doing so, it is able to sustain its growth in the coming future.
After 100 years of development, Clorox grows from selling only one cleaning product to nowadays a more diversity business model. Its business account of cleaning (32%), household (31%), lifestyle (17%), and other 20% of international business.
Recent years the company has suffered from nearly double digit of international sales drop due to stronger US dollar.
The above reasons are why I love Clorox stock.
Although Clorox sounds like a boring company, selling home care cleaning products to all over the world, however, it makes its long term shareholders rich in an unnoticed way.
Wednesday, July 26, 2017
Tuesday, July 18, 2017
One of the Richest Manga Artist in Japan: The Author of One Piece -- Oda Eiichiro
In the past, people who were rich, they have made their money through
hard assets like properties or land. Nowadays, thanks to the advance
technology, people create their wealth through different alternative
ways.
Most of the parents in Asia think that being a manga artist will eventually end up poor, or even worse, end up with debt.
However, the most popular manga artists in Japan have earned themselves very good fortune, some can even beat the annual salary of NBA super star.
Oda Eiichiro, the creator of the famous manga "One Piece", looks nothing different like most of the ordinary people, however, his one and only master piece has earned him at least multi millions of dollar per year.
One piece is so popular, it has fans all around the world. The main characters in One Piece have their own individual strong personality, plus the inspirational story touches the readers' hearts.
The success of One Piece is massive, fans always called Oda Eiichiro, the father of One Piece.
He is a workaholic, only sleeps 3 hours per day, for the past 15 years, dedicated most of his time on his manga. We can tell that he does it for the passion for manga, not because of money.
So far he has only created one manga: One piece.
The sources of his income includes royalties, income earned from international licensing and character goods.
All of them made up of 3.1 billion yen ($26 million) last year.
Most of the parents in Asia think that being a manga artist will eventually end up poor, or even worse, end up with debt.
However, the most popular manga artists in Japan have earned themselves very good fortune, some can even beat the annual salary of NBA super star.
Oda Eiichiro, the creator of the famous manga "One Piece", looks nothing different like most of the ordinary people, however, his one and only master piece has earned him at least multi millions of dollar per year.
One piece is so popular, it has fans all around the world. The main characters in One Piece have their own individual strong personality, plus the inspirational story touches the readers' hearts.
The success of One Piece is massive, fans always called Oda Eiichiro, the father of One Piece.
He is a workaholic, only sleeps 3 hours per day, for the past 15 years, dedicated most of his time on his manga. We can tell that he does it for the passion for manga, not because of money.
So far he has only created one manga: One piece.
The sources of his income includes royalties, income earned from international licensing and character goods.
All of them made up of 3.1 billion yen ($26 million) last year.
Wednesday, July 12, 2017
AEO: Dividends & Stock Splits (American Eagle Outfitters)
American Eagle Outfitters was founded in 1977 by Jerry Silverman and Mark Silverman, this year is its 40th anniversary.
AEO went public on 1994.
In 2006, the company launched a lingerie sub-brand, Aerie. Aerie is very successful and growing in a steady pace. Aerie ends up to be the only surviving sub-brand of AEO.
The company attempt to expand their market share by venturing into the older adults market through opening sub-brand named Martin + Osa in 2006, closed in 2010; another sub-brand called 77kids in 2008 targeted on 2-10 years kids, closed & sold in 2012.
AEO has a dividend yield of 4.44%, they are giving out $0.125 each quarter, which makes it $0.5 per year. The dividend looks attractive to me, and the stock price is currently trading near its lowest point of the year, which is around $11~$12 (July 2017).
AEO started giving out dividend since September of 2004, with $0.02 per quarter, dividend yield of 0.31% per year. Gradually the company increased their dividend to $0.125, dividend yield of 4.44%.
Although AEO has faced different challenges, they are able to grow & continually expand their business to more than 1,000 stores not only in US, but also in Canada, Mexico, China, Hong Kong, Singapore, Thailand, Israel, Saudi Arabia and several other countries in Asia and Europe.
AEO has 6 stock splits started from the year 1998 to 2006.
Jan 06, 1998 -- 3/2 Stock Split
May 11, 1998 -- 3/2 Stock Split
May 04, 1999 -- 2/1 Stock Split
Feb 26, 2001 -- 3/2 Stock Split
Mar 08, 2005 -- 2/1 Stock Split
Dec 19, 2006 -- 3/2 Stock Split
I got this information from Yahoo Finance.
Let's assume that I bought 1,000 AEO shares on Jan 02, 1998 at $1.75. My initial investment would be:
$1.75 x 1,000 shares = $1,750
After the 3/2 stock split on Jan 06, 1998, my 1,000 shares would become 1,500 shares
After the 3/2 stock split on May 11, 1998, my 1,500 shares would become 2,250 shares
After the 2/1 stock split on May 04, 1999, my 2,250 shares would become 4,500 shares
After the 3/2 stock split on Feb 26, 2001, my 4,500 shares would become 6,750 shares
After the 2/1 stock split on Mar 08, 2005, my 6,750 shares would become 13,500 shares
After the 3/2 stock split on Dec 19, 2006, my 13,500 shares would become 20,250 shares
Remember that my amount of initial investment was 1,000 shares with stock price at $1.75, which equaled $1,750.
How much would my intial investment become, after I hold the stock for 19 years?
The original 1,000 shares had grown to 20,250 shares after 6 stock splits. That means:
if we take the closed price of AEO on July 10, 2017, which is $11.25,
$11.25 x 20,250 shares = $227,812.50
My original investment $1,750 would become $227,812.50 after I hold the AEO stocks for 19 years!!!
This has not included the dividend I receive from Sep 2004 to July 2017 yet!
Some Other reasons why I like AEO:
The company has a very low PE ratio 10.88, and it has no debt.
They have healthy cashflow, even during tough, the company giving out the dividend without discount.
Just like other retailers, AEO is facing the threat of Amazon. Many people shift their shopping habit from going to brick-and-mortar stores to online shopping. AEO planned to shut down its 25-40 brick-and-mortar stores in 2017.
Other economic challenges faced by the company included strong US dollar & global uncertainty. Their international sales will be affected by such issues.
If anyone who is currently living in US, I'm really appreciate if you share with me whether AEO is a popular apparel brand in US, I'm living in Asia, and I'm very curious about it. Thank you (^-^)
AEO went public on 1994.
In 2006, the company launched a lingerie sub-brand, Aerie. Aerie is very successful and growing in a steady pace. Aerie ends up to be the only surviving sub-brand of AEO.
The company attempt to expand their market share by venturing into the older adults market through opening sub-brand named Martin + Osa in 2006, closed in 2010; another sub-brand called 77kids in 2008 targeted on 2-10 years kids, closed & sold in 2012.
AEO has a dividend yield of 4.44%, they are giving out $0.125 each quarter, which makes it $0.5 per year. The dividend looks attractive to me, and the stock price is currently trading near its lowest point of the year, which is around $11~$12 (July 2017).
AEO started giving out dividend since September of 2004, with $0.02 per quarter, dividend yield of 0.31% per year. Gradually the company increased their dividend to $0.125, dividend yield of 4.44%.
Although AEO has faced different challenges, they are able to grow & continually expand their business to more than 1,000 stores not only in US, but also in Canada, Mexico, China, Hong Kong, Singapore, Thailand, Israel, Saudi Arabia and several other countries in Asia and Europe.
AEO has 6 stock splits started from the year 1998 to 2006.
Jan 06, 1998 -- 3/2 Stock Split
May 11, 1998 -- 3/2 Stock Split
May 04, 1999 -- 2/1 Stock Split
Feb 26, 2001 -- 3/2 Stock Split
Mar 08, 2005 -- 2/1 Stock Split
Dec 19, 2006 -- 3/2 Stock Split
I got this information from Yahoo Finance.
Let's assume that I bought 1,000 AEO shares on Jan 02, 1998 at $1.75. My initial investment would be:
$1.75 x 1,000 shares = $1,750
After the 3/2 stock split on Jan 06, 1998, my 1,000 shares would become 1,500 shares
After the 3/2 stock split on May 11, 1998, my 1,500 shares would become 2,250 shares
After the 2/1 stock split on May 04, 1999, my 2,250 shares would become 4,500 shares
After the 3/2 stock split on Feb 26, 2001, my 4,500 shares would become 6,750 shares
After the 2/1 stock split on Mar 08, 2005, my 6,750 shares would become 13,500 shares
After the 3/2 stock split on Dec 19, 2006, my 13,500 shares would become 20,250 shares
Remember that my amount of initial investment was 1,000 shares with stock price at $1.75, which equaled $1,750.
How much would my intial investment become, after I hold the stock for 19 years?
The original 1,000 shares had grown to 20,250 shares after 6 stock splits. That means:
if we take the closed price of AEO on July 10, 2017, which is $11.25,
$11.25 x 20,250 shares = $227,812.50
My original investment $1,750 would become $227,812.50 after I hold the AEO stocks for 19 years!!!
This has not included the dividend I receive from Sep 2004 to July 2017 yet!
Some Other reasons why I like AEO:
The company has a very low PE ratio 10.88, and it has no debt.
They have healthy cashflow, even during tough, the company giving out the dividend without discount.
Just like other retailers, AEO is facing the threat of Amazon. Many people shift their shopping habit from going to brick-and-mortar stores to online shopping. AEO planned to shut down its 25-40 brick-and-mortar stores in 2017.
Other economic challenges faced by the company included strong US dollar & global uncertainty. Their international sales will be affected by such issues.
If anyone who is currently living in US, I'm really appreciate if you share with me whether AEO is a popular apparel brand in US, I'm living in Asia, and I'm very curious about it. Thank you (^-^)
Tuesday, July 11, 2017
About This Blog~
Hi Everyone, welcome to my blog (^-^)
First of all, I want to say thank you for reading this blog, really appreciate it.
The purpose of me creating this blog, is to record the information I have collected during my stocks research. I know that if I don't write them down in somewhere, I'm sure I will forget about what I have read after researching for so many companies. So this is how I got this blog idea.
Another purpose is to improve my English. English is not my first language, and I always wish I can be very good in my English someday. Some people told me that if I write more often, my English will be improved day after day. Hope by taking this action, I will achieve my goal in the near future.
Just so you know, I do research on these stocks for myself, and I'm not good in figures and analysis. So the research is merely based on what I know. And also I'm not providing any investment advise.
I will write some article about fortune too.
That's all about this blog, hope you enjoy your reading (^-^)
First of all, I want to say thank you for reading this blog, really appreciate it.
The purpose of me creating this blog, is to record the information I have collected during my stocks research. I know that if I don't write them down in somewhere, I'm sure I will forget about what I have read after researching for so many companies. So this is how I got this blog idea.
Another purpose is to improve my English. English is not my first language, and I always wish I can be very good in my English someday. Some people told me that if I write more often, my English will be improved day after day. Hope by taking this action, I will achieve my goal in the near future.
Just so you know, I do research on these stocks for myself, and I'm not good in figures and analysis. So the research is merely based on what I know. And also I'm not providing any investment advise.
I will write some article about fortune too.
That's all about this blog, hope you enjoy your reading (^-^)
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