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Clorox vs . Colgate : One Pays Nearly 6 %, but Is It a Dividend Trap ?

The article compares Clorox (NYSE:CLX), which yields 5.89%, with Colgate-Palmolive (NYSE:CL), which yields 2.27%, for retirement-focused investors. Clorox pays $5.00 a year, more than Colgate's $2.12, but its shares fell 22.44% over the past year while Colgate rose 23.55%, and management called the current payout "a bit elevated." Clorox's fiscal 2026 operating cash flow fell 37.61% to $612M, and its total liabilities of $7.542B far exceeded shareholders' equity of $252M after the GOJO/Purell deal. Colgate has raised its dividend for 63 consecutive years, its second-quarter gross margin rose to 61.5%, and it generated $3.634B in free cash flow in 2025. The author concludes that Colgate is the stronger retirement holding, while Clorox's high yield reads as a warning sign.

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Original headline: Clorox vs . Colgate : One Pays Nearly 6 %, but Is It a Dividend Trap ?

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