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.
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