CL vs CLX: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | CL | CLX |
|---|
| Dividend Yield | 2.16% | 3.98% |
| Annual Dividend | $2.08 | $4.96 |
| 5-Year CAGR | 11.1% | 9.4% |
| Payout Ratio | 78% | 81% |
| Consecutive Years | 0 | 0 |
| Price | $96.41 | $125.24 |
Yield Comparison
Clorox Co /De/ (CLX) currently yields 3.98%, which is solid for the broader market. That's 1.82% more than Colgate Palmolive Co (CL), which yields 2.16%. In dollar terms, CLX pays $4.96/share annually versus CL's $2.08/share.
Dividend Growth
Over the past five years, CL has grown its dividend at a 11.1% CAGR compared to CLX's 9.4%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "At Risk." The payout ratio of 81% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. Both have similar payout ratios — CL at 78% and CLX at 81%.
Income Comparison
A $10,000 investment in CLX generates approximately $398/year in dividend income, compared to $216/year from CL — a difference of $182/year. At $100,000, that gap widens to $1820/year.
Verdict
- Best for income: CLX
- Best for growth: CL
- Best for safety: CL
Frequently Asked Questions
Which has a higher dividend yield, CL or CLX?
Clorox Co /De/ (CLX) has a higher dividend yield of 3.98% compared to Colgate Palmolive Co (CL) at 2.16%.
Is CL or CLX a better dividend growth stock?
Colgate Palmolive Co has the stronger dividend growth with a 5-year CAGR of 11.1%, compared to Clorox Co /De/'s 9.4%.
Which is safer for dividend income, CL or CLX?
Colgate Palmolive Co's dividend safety is rated "Moderate" while Clorox Co /De/ is rated "At Risk." 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. The payout ratio of 81% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
How much income does $10,000 in CL vs CLX generate?
A $10,000 investment in CL generates approximately $216/year in dividends, while the same amount in CLX generates about $398/year.
Which has a lower payout ratio, CL or CLX?
Colgate Palmolive Co has a lower payout ratio of 78% compared to Clorox Co /De/'s 81%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CL vs CLX: which is better for retirement income?
It depends on your priorities. CLX for current income, CL for dividend growth, CL for safety. Many retirement investors hold both for diversification.
CL Dividend Analysis | CLX Dividend Analysis | All Comparisons | Comparison Tool