Clorox and PepsiCo both offer dividend yields above 4%, reflecting investor concerns about slow growth and rising costs. PepsiCo's stock sits about 19% below its 52-week high after core EPS rose only 2% in the third quarter, and the company cut its full-year core EPS growth outlook to 2.5% to 3.5%, trading at 16.5 times earnings with the stock near $138. Clorox's stock is about 27% below its 52-week high; its fiscal 2027 first-quarter net sales rose 33% to $1.9 billion, helped by the GOJO acquisition, though adjusted EPS is now expected near the low end of its $5.70–$6.00 guidance range. On dividend coverage, PepsiCo generated $10.5 billion of free cash flow over the last 12 months versus $7.9 billion in dividends, while Clorox generated $405 million against $602 million in dividends, including a $476 million payment to terminate a joint venture. The author's scenarios show a $10,000 investment in each reaching similar returns by 2036, with PepsiCo slightly ahead in every case.
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