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Clorox downgraded to sell as sales fall and dividend sustainability is at risk amid rising debt.

Analyst Insights
22 Sep 2026
Seeking Alpha
View Source
Bearish
Clorox downgraded to sell as sales fall and dividend sustainability is at risk amid rising debt.

Clorox has been downgraded from hold to sell due to worsening fundamentals, including a 13% decline in organic sales in Q4 despite acquiring GOJO. The company's long-term debt has surged to nearly $4 billion, raising concerns in a high interest rate environment. Although the current 6% dividend yield looks attractive, free cash flow no longer covers the dividend payout, putting its sustainability in doubt. Investors should be cautious given the declining profitability and financial pressures.

Clorox shares are trading at USD 86.24 on Pluang as of Sep 22, 2026 20:01 WIB, showing a 1.60% gain in the last day. The stock's dividend yield stands at 5.89%, slightly below the 6% mentioned in the article. Notably, 61% of Pluang users are currently selling Clorox, reflecting some investor caution despite the recent price uptick.

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