Two companies devoted to consumer products released earnings this week. One makes items used for cleaning, the other makes goods that you can actually eat.
We’ll start with the cleaning-item concern. The Clorox Company (CLX), manufacturer of the iconic laundry bleach, issued results for its fiscal second quarter earlier today. At the time of this writing, shares were higher by 2.4% to a quote of $65.26. Volume was strong. The 52-week low for the stock is $59.07 and the 52-week high is $69. The one-year chart is, well… not that great.
But the Q2 income picture wasn’t bad at all. While adjusted profit increased a scant 3% to 68 cents per share, that figure was two pennies higher than the year-ago stat, and a whopping 22 cents better than the projection of 46 cents per share, according to the Associated Press. There is a problems, though: guidance for the full fiscal year took a hit.
Seems like the market is willing to ignore that aspect of the story. I don’t blame it. Clorox is a fine company backed by strong brands. It’s an appropriate vehicle to be utilized by a portfolio constructed for patience. Right now, the shares are yielding 3.4%, making them quite appealing for those who enjoy the support of dividends.
How is one of the kings of the breakfast table, Kellogg Company (K), faring these days? Like Clorox, the company’s stock is seeing a bid this afternoon. At the time of this writing, the equity was up 1.9% to $53.50. The 52-week low for the business is $47.28 while the 52-week high is $56. The one-year chart for this name is similar to the one for Clorox in terms of displaying some challenging price movement.
The maker of Frosted Flakes posted its Q4 release on Thursday, and Reuters says that the company only matched Wall Street’s estimate by delivering 51 cents per share on the bottom line. Not so impressive, but an analyst comment in the article highlights the fact that an impairment charge contained within the earnings number needs to be taken into consideration.
Kellogg enjoys spreading the wealth via dividend payments as well. At the moment, shares are yielding 3%. I would consider the stock a buy at this point for long-term holders.
Bottom line: Both Clorox and Kellogg possess attractive dividend yields and should do well over time. Traders may want to wait for pullbacks.
Disclosure: I don’t own any company mentioned; positions can change without notice.
