The Procter & Gamble Company (PG), Kimberly-Clark Corp (KMB): Prospects Look Bright For Household And Personal Product Industries

Clorox has been consistently paying a stable and increasing dividend. At present, The Clorox Company (NYSE:CLX) offers a quarterly dividend of $0.64 per share. In the past five years, the company increased its dividend by 60%. In the TTM, its payout ratio based on dividends stood at 58.2%, which is manageable.

Recently, Clorox announced Q2 results with earnings of $123 million, up 18% over the past year’s quarter. It has shown solid performance in all business segments. On a consolidated basis, its sales grew by nearly 9% over the past year’s quarter. Additionally, it has shown a solid gross margin expansion. In the Q2, The Clorox Company (NYSE:CLX) improved its gross margin by 100 basis points to 42.5%.

Its cash flows are also in a solid position to support and back consistently increasing returns for investors. In the TTM, its operating and free cash flows stood at $769 million and $557 million, respectively. Its free cash flow is enough to cover current dividend payments. In the TTM, its dividend payments stood at $323 million.

Final Notes

The Procter & Gamble Company (NYSE:PG) is consistently paying increasing dividends. The recent 7% increase in dividends symbolizes the company’s strong financial situation. Procter & Gamble is also trading at attractive multiples, compared to industry peers. Procter & Gamble can be a safe pick for dividend investors.

Kimberly Clark Corp (NYSE:KMB) is displaying a strong financial situation. The company’s revenue growth is quite stagnant. However, its restructuring efforts led it to enhance margins. The stock looks pricey at present. Nevertheless, Kimberly-Clark looks like a safe stock for dividend investors.

The Clorox Company (NYSE:CLX) is, and remains, a solid stock for dividend investors. The company had strong year-over-year sales growth, along with a solid gross margin, which is key for any companies consistently generating profitable growth. With a 5% sales growth and 10% EPS growth in the first half of the year, the company improved its full-year outlook. Clorox is anticipating producing EPS in the range of $4.25-$4.35.

The article Prospects Look Bright For Household And Personal Product Industries originally appeared on Fool.com and is written by siraj sarwar.

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