The Smartest Dividend Stock to Buy With $5,000 Right Now

By Will Healy – Mar 26, 2026 at 1:55AM ESTKey PointsClorox suffered after the pandemic with slowing sales and a painful transition to a new CRM system.The drop has made the dividend yield and valuation increasingly compelling.Amid conflict in the Middle East, investors face deep uncertainty. Such conditions could negatively affect many of the artificial intelligence (AI) stocks that drove the latest bull market. Knowing that, investors may want to turn to dividend-paying consumer stocks. While such stocks tend not to have as high a potential for massive returns, their steady, growing dividends often mean they have less propensity to experience massive drops. Additionally, improved business conditions could turn the following consumer staples stock into one of the smartest places to invest $5,000 right now. Here's how. Image source: Getty Images. The smart dividend stock investors should buy Under current conditions, investors might want to consider Clorox (CLX +1.59%). At today's price, $5,000 should buy approximately 48 shares. Moreover, Clorox offers a dividend that has risen annually for decades. It pays shareholders $4.96 per share annually, amounting to a dividend yield of about 4.7%. That returns investors more than the 10-year Treasury yield of around 4.4%, paying them well to wait on potential stock price growth. Additionally, investors have an opportunity in a stock that most investors probably overlook. The company not only owns its flagship bleach product but also brands such as charcoal maker Kingsford, health products company Burt's Bees, and water filtration enterprise Brita. Demand for Clorox's products surged during the pandemic, but the stock has suffered since that time. Furthermore, a cyberattack in 2023 and the process of implementing a new CRM system weighed on the company's performance, taking the stock down by more than 55% from its peak. ExpandNYSE: CLXCloroxToday's Change(1.59%) $1.64Current Price$104.71Key Data PointsMarket Cap$13BDay's Range$101.99 - $104.7952wk Range$96.66 - $150.84Volume81KAvg Vol2.2MGross Margin44.04%Dividend Yield4.72% Indeed, the fact that its $3.1 billion in sales in the first six months of fiscal 2026 (ended Dec. 31) fell 10% may not reassure investors. Fortunately, analysts believe that the decline rate will fall to 8% for fiscal 2026 before rebounding 5% in fiscal 2027. Also, its $778 million in free cash flow covered the $602 million in dividend costs. This makes the company likely to maintain the annual streak of payout hikes. With the stock trading at just 17 times earnings, investors may be more inclined to capitalize on that income stream as business conditions improve. Invest in Clorox stock Under current conditions, Clorox looks increasingly like an excellent company in which to invest $5,000. Aside from the low valuation and depressed stock price, it will pay investors a cash return comparable to many fixed-income investments. Moreover, returns may not be limited to the dividend. With Clorox addressing issues with its CRM system, sales growth is on track to make a comeback. Hence, as growth resumes, it could spawn a virtuous cycle of higher dividends and a growing stock price, and such growth should protect you in today's economy.Read NextMar 26, 2026 •By Thomas NielShould You Buy the Dip on Disney Stock?Mar 25, 2026 •By Daniel SparksIt's Time to Load Up on This Iconic Dividend StockMar 25, 2026 •By Thomas NielWill Kohl's Close More of Its Brick-and-Mortar Stores in 2026?Mar 25, 2026 •By Jeremy BowmanChewy Just Popped. Is the Pet Stock a Buy Now?Mar 25, 2026 •By Will HealyCEO Sells 60,000 GigaCloud Technology Shares Worth $2.4 MillionMar 25, 2026 •By Catie HoganHere Are 7 Ways the Strait of Hormuz Closure Is Affecting Consumer Staples StocksAbout the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedCloroxNYSE: CLX$104.76(+1.64%)+$1.69*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.