CL vs CLX: Dividend Comparison
Dividend data as of
Colgate Palmolive Co (CL) and Clorox Co /De/ (CLX) are both in the Consumer Staples sector, making them natural rivals for dividend investors. CLX offers a significantly higher 3.98% yield compared to CL's 2.16%, a gap of 1.82%. For dividend growth, CL leads with a 5-year CAGR of 11.1% versus CLX's 9.4%. CL holds the edge in dividend safety with a "Moderate" rating.
Verdict
Yield Analysis
CLX yields 1.82% more than CL. In dollar terms, CL pays $2.08/share vs CLX's $4.96/share annually.
Dividend Growth
CL: Dividend growth is accelerating — the 3-year CAGR of 19.6% exceeds the 5-year rate of 11.1% and the 10-year rate of 6.5%.
CLX: Dividend growth is accelerating — the 3-year CAGR of 17.2% exceeds the 5-year rate of 9.4% and the 10-year rate of 8.5%.
Dividend Safety
CL: The payout ratio of 78% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
CLX: The payout ratio of 81% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in CL vs CLX today?
At $96.41 per share, $10,000 buys about 103.7 shares of Colgate Palmolive Co (CL). Each share pays $2.08 per year in dividends, so the position starts out generating roughly $216 per year — about $18 a month.
At $125.24 per share, $10,000 buys about 79.8 shares of Clorox Co /De/ (CLX). Each share pays $4.96 per year in dividends, so the position starts out generating roughly $396 per year — about $33 a month.
CLX is the larger income stream from day one: $180 per year more on the same $10,000 invested.
What could $10,000 of CL or CLX income look like in 10 years?
Colgate Palmolive Co (CL) has raised its dividend about 11.1% a year over the past five years. If that pace held, the $216 per year that $10,000 generates today at the current 2.16% yield would reach $621 per year by 2036 — a 6.2% yield on the original cost.
Clorox Co /De/ (CLX) has raised its dividend about 9.4% a year over the past five years. If that pace held, the $398 per year that $10,000 generates today at the current 3.98% yield would reach $981 per year by 2036 — a 9.8% yield on the original cost.
On those trailing rates, CLX pays more in 2036: $981 versus $621 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would CL's dividend growth overtake CLX's higher yield?
Not within a realistic holding period. Colgate Palmolive Co (CL) is growing its dividend faster (11.1% vs 9.4% a year), but the starting-yield gap — 3.98% for CLX vs 2.16% for CL — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, CLX's head start is decisive.
Can CL and CLX afford their dividends?
Colgate Palmolive Co (CL) earns $2.63 per share against $2.08 paid out in dividends — 1.3x coverage (a 78% payout ratio).
Clorox Co /De/ (CLX) earns $6.11 per share against $4.96 paid out in dividends — 1.2x coverage (a 81% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, CL or CLX?
For income you need right now, Clorox Co /De/ (CLX) leads: $100,000 invested today pays about $332 a month at the current 3.98% yield, versus $180 a month from Colgate Palmolive Co (CL) at 2.16%.
With a decade or more before the income is needed, CL's faster dividend growth (11.1% vs 9.4% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $769/yr in CL vs $1,449/yr in CLX by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track CL and CLX in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.