Clorox (CLX) Stock Plummets 37.9% Amid Turnaround, Yield Reaches 4.9%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
Source: Fool
- Significant Stock Decline: Clorox's stock plummeted 37.9% in 2025, starkly contrasting with the S&P 500's 16.4% gain, highlighting the substantial challenges the company faces during its turnaround, which may impact investor confidence.
- Increased Dividend Yield: Despite its struggles, Clorox's dividend yield has risen to 4.9%, indicating the company's commitment to enhancing shareholder returns, potentially attracting income-focused investors amid market volatility.
- Slow Transformation Process: Clorox is undergoing a multi-year turnaround by updating its outdated ERP system, with expectations of a 5% to 9% decline in organic sales for fiscal 2026, which will negatively impact short-term performance, necessitating investor focus on long-term strategy.
- Leveraging Brand Strength: With approximately 80% of its brands ranking in the top two of their categories, Clorox aims to leverage its brand strength through smaller and larger packaging options to meet consumer needs, thereby enhancing market share and customer loyalty.
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Analyst Views on CLX
Wall Street analysts forecast CLX stock price to rise
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 110.680
Low
94.00
Averages
118.69
High
152.00
Current: 110.680
Low
94.00
Averages
118.69
High
152.00
About CLX
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products. The Company operates through four segments: Health and Wellness, Household, Lifestyle, and International. Its Health and Wellness segment consists of cleaning, disinfecting and professional products marketed and sold under the Clorox, Clorox2, Pine-Sol, Scentiva, Tilex, Liquid-Plumr and Formula 409 brands in the United States. Its Household segment consists of bags and wraps, cat litter and grilling products marketed and sold under the Glad, Fresh Step and Scoop Away, and Kingsford brands in the United States. The lifestyle segment consists of food, water-filtration and natural personal care products marketed and sold under the Hidden Valley, Brita and Burt’s Bees brands. International consists of products sold outside the United States. Its products within this segment include laundry additives, home care products, bags and wraps, cat litter, water-filtration products and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sector Positioning: Consumer staples stocks represent only 5.3% of the S&P 500, ranking as the seventh-largest sector weight, yet their everyday product familiarity fosters brand loyalty, making them a focal point for investors despite lacking the glamour of tech stocks.
- Coca-Cola Europacific Partners: This company serves over 600 million consumers across 31 markets, boasting a market cap of $45 billion and a dividend yield of 2.30%, indicating strong shareholder return potential and solid dividend growth prospects.
- Keurig Dr Pepper Acquisition: The company is nearing the completion of its $18 billion acquisition of JDE Peet's, with expectations to generate $4.2 billion in annual free cash flow from 2027 to 2030, supported by $1 billion in cash liquidity, despite an increase in debt ratio.
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See More
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- Strong Sector Performance: The consumer staples sector has outperformed the broader market in 2023, capturing investor interest due to its stable dividend yields and lower volatility, despite only representing 5.3% of the S&P 500, highlighting its investment appeal.
- Coca-Cola Europacific Partners: This company serves over 600 million consumers across 31 markets, operating independently while Coca-Cola retains a 19% stake, and is expected to benefit from rising demand for Coca-Cola products, showcasing potential for reliable dividend growth.
- Keurig Dr Pepper Acquisition: Keurig Dr Pepper is nearing the completion of its $18 billion acquisition of JDE Peet's, with expectations of generating $4.2 billion in annual free cash flow from 2027 to 2030, although dividend growth may slow in the short term, the long-term outlook remains positive.
- Clorox's Recovery Potential: Despite a 37.6% decline in stock price over the past five years, Clorox's nearly fifty-year streak of dividend increases and ongoing R&D efforts may support a rebound, making it attractive for income-seeking investors.
See More
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- Stock Sensitivity to Oil Shocks: Not all stocks react the same way to fluctuations in oil prices, indicating that some may offer more stability during these market changes.
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- Unique Cultural Experience: The Ranch-bassador program by Hidden Valley Ranch will recruit four fans as cultural explorers for a seven-week culinary journey across Europe, aiming to blend America's unique ranch flavor with local cuisines and enhance the brand's international presence.
- Recruitment Details: Set for Summer 2026, applicants must form pairs and will enjoy fully reimbursed international travel expenses, including airfare, accommodation, and daily stipends, reflecting the brand's commitment to its fans and cultural exchange.
- Content Creation Requirements: Each Ranch-bassador duo is expected to produce four short videos and one long video during their travels, with content shared across social media platforms, showcasing the fusion of ranch dressing with European dishes and boosting the brand's social media footprint.
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High-Yield Dividend Stocks: Companies like Chevron, Clorox, Energy Transfer, Global Net Lease, and Altria are highlighted as strong defensive plays due to their high dividend yields and stable demand, making them attractive options for investors seeking income amidst market volatility.
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