I try to keep my readers updated with trades as soon as possible. I’m reporting one last purchase for the end of June. This purchase was from an existing position that I wanted to increase my stake in.
As you can see from the picture above, CLX owns a lot of giant brands. Many of these are Billion dollar brands that are available worldwide. I hadn’t purchased shares of CLX in over two years so I was overdue to add to this position.
Clorox has a P/E of 21.16 and a payout ratio of 62% while yielding a pretty decent 3.2%. S&P Capital IQ gives a 3-year estimated EPS CAGR of 7% and Morningstar rates them 4/5 stars currently. Clorox has raised their dividend consecutively for 37 years making them a Dividend Champion! They have a 5-year CAGR of 9.4%. Their latest dividend increase, however, was only 4.2% that they announced in May. I don’t think shares are cheap by any means but I also don’t think they are overvalued. CLX is a long-term holding for me and I was due to bring up their weight in my portfolio.
So on Monday I decided to purchase 40 more shares at a cost of 91.83/share. These 40 shares will provide an additional income of $118.40 per year. After the purchase my new cost basis is 78.24/share, which is still over 17% below current market values.
I will continue making regular purchases no matter what the markets are doing. I like the idea of dollar-cost-averaging into positions over time. I don’t have a lot of new ideas for purchases right now with the markets so elevated so I will likely continue purchasing shares of existing positions.