Clorox dividend
MyStockButler's October 2026 analysis: Clorox paid $4.93 of dividends per share in FY2026, while real free cash flow was $2.92 per share. Clorox's real free cash flow did not cover the dividend, while $256 million also went to buybacks.
How much does Clorox pay shareholders over time?
Revenue fell from $7,107 million in FY2022 to $6,720 million in FY2026. Operating margin recovered from FY2023’s 4.2% to 13.6% in FY2026. The FY2026 margin remained below FY2025’s 16.3%. Real free cash flow, calculated here after deducting stock pay, was 5.3% of revenue in FY2026, down from 9.6% in FY2025. The key shareholder test is $2.92 of real free cash flow per share against $4.93 of dividends paid per share.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 4.81 | 6.52 | 2.25 | 1.20 | 3.73 |
| Real free cash flow per share | 2.92 | 5.47 | 3.28 | 6.90 | 3.90 |
| − Dividends paid, per share | 4.93 | 4.84 | 4.77 | 4.69 | 4.61 |
What this means. The company's own free cash flow per share is higher because it adds back the Glad venture payment, while our count treats that payment as cash the company spent.
How much would Clorox's dividend pay you?
$10,000 invested in Clorox at its 5.8% dividend yield (our report of October 25, 2026) pays $580.00 in the first year, before tax. If its dividend per share keeps changing 1.7% a year, as it did from Jun 2022 to Jun 2026, and the dividends are reinvested, year 10 pays $1,159.91, with $8,355.54 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Clorox's dividend covered by its cash?
Instead, Clorox paid $602 million in dividends and bought back $256 million of stock in fiscal 2026. The distributions totalled $858 million, or 211.9% of free cash flow. The board also raised the quarterly dividend to $1.25 a share on July 31, 2026. Dividends give cash directly to owners; buybacks reduce the number of shares sharing future earnings. Both can create value, but only if the company retains enough cash to invest and repay borrowing.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 405 | 761 | 483 | 930 | 535 |
| − Dividends paid | 602 | 602 | 595 | 583 | 571 |
| − Share buybacks | 256 | 332 | 0 | 0 | 25 |
| = Free cash flow not paid out | 332 | ||||
| = Paid out more than the free cash flow | 469 | 189 | 128 | 76 | |
| Paid out, % of real free cash flow | 240.3% | 137.4% | 145.5% | 68.0% | 123.4% |
What could change Clorox's dividend?
Dividends stay at $5.00 per share in the first forecast window. The base case then raises them modestly to $5.10, below the recent pattern of annual increases, because debt and weak FY2026 cash coverage constrain payout growth. The bear case cuts the dividend to $3.20, while the bull case raises it to $5.40.
From FY2028 through October 2029, recurring cash generation must reduce leverage while preserving dividends. Faster debt repayment and selective buybacks would support the bull multiple; elevated leverage or refinancing concern would compress it.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 707 (629 / 747) | 758 (631 / 836) | 812 (640 / 922) |
| Shares (millions) | 121 (122 / 120) | 122 (122 / 119) | 121 (123 / 116) |
| Dividends per share | 5.00 (5.00 / 5.00) | 5.05 (4.00 / 5.20) | 5.10 (3.20 / 5.40) |
| Price to earnings | 15.00 (12.00 / 18.00) | 15.50 (11.00 / 20.00) | 16.00 (10.00 / 22.00) |
What is Clorox's dividend yield against its price?
A share bought on October 25, 2026 represents a claim on what remains after Clorox pays suppliers, employees, taxes and lenders. Equity value therefore differs from enterprise value, which adds debt and other claims and subtracts cash. It is like buying a house while taking over its mortgage. Clorox reported approximately $5.1 billion of debt at June 2026 after borrowing for its acquisition of GOJO, the maker of Purell, so the operating business costs substantially more than the shares alone suggest.