CLOROX (CLX) REPLACING SYSCO (SYY)

In a further effort to increase dividend income, while boosting prospects for continued growth of my portfolio, my latest move is to sell my shares in Sysco Food Service (SYY) and replace them with Clorox (CLX). While I believe that Sysco is a good long term investment I think that Clorox will fair better. I also believe that Sysco has enjoyed somewhat of a boost from reductions in transportation related expenses over the past year. While both stocks are affected by transportation costs, I think it likely that Sysco will suffer more of a negative impact to earnings should oil prices increase.

Clorox Company was founded in Oakland, Calif., in 1913 and is incorporated in Delaware. The Company is a leading manufacturer and marketer of consumer products. The Company sells its products mainly through mass merchandisers, grocery stores and other retail outlets. It markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Green Works(tm) natural cleaners and laundry products, Poett(r)and Mistolin(r)cleaning products, Armor All(r) and STP(r) auto-care products, Fresh Step(r) and Scoop Away(r) cat litter, Kingsford(r) charcoal, Hidden Valley(r) and K C Masterpiece(r) dressings and sauces, Brita(r) water-filtration systems, Glad(r) bags, wraps and containers, and Burt's Bees(r) natural personal care products. With approximately 8,300 employees worldwide, the Company manufactures products in more than two dozen countries and markets them in more than 100 countries. The Company operates through strategic business units which are aggregated into four reportable segments: Cleaning, Lifestyle, Household and International. Cleaning consists of laundry, home-care, professional products and auto-care products marketed and sold in the United States. Products within this segment include laundry additives, including bleaches, under the Clorox(r) and Clorox 2(r) brands home-care products, mainly under the Clorox(r), Formula 409(r), Liquid-Plumr(r), Pine-Sol(r), S.O.S(r) and Tilex(r) brands natural cleaning and laundry products under the Green Works(tm) brand and auto-care products mainly under the Armor All(r) and STP(r) brands. Lifestyle consists of food products and water-filtration systems and filters marketed and sold in the United States and all natural personal care products. Products within this segment include dressings and sauces, mainly under the Hidden Valley(r) and K C Masterpiece(r) brands water-filtration systems and filters under the Brita(r) brand and all natural personal care products under the Burt's Bees(r) brand. Household consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Products within this segment include plastic bags, wraps and containers, under the Glad(r) brand cat litter products, under the Fresh Step(r), Scoop Away (r) and Ever Clean(r) brands and charcoal products under the Kingsford(r) and Match Light(r) brands. International consists of products sold outside the United States. These products include home-care, laundry, auto-care, water filtration, charcoal and cat litter products, dressings, plastic bags, wraps and containers, and insecticides, mainly under the Clorox(r), Javex(r), Glad(r), PinoLuz(r), Ayudin(r), Limpido(r), Clorinda(r), Poett(r), Mistolin(r), Lestoil(r), Bon Bril(r), Nevex(r), Brita(r), Armor All(r), STP(r), Green Works(r), Sabra(r), Pine-Sol(r) and Agua Jane(r), Ever Clean(r), Chux(r), Kingsford(r), and Hidden Valley(r) brands.

Most of the Company's products are nationally advertised and sold within the United States to mass merchandisers, warehouse clubs, and dollar, military and other types of retail stores mainly through a direct sales force, and to grocery stores and grocery wholesalers mainly through a combination of direct sales teams and a network of brokers. The markets for consumer products are highly competitive. Most of the Company's products compete with other nationally advertised brands within each category and with private label brands and generic non branded products in certain categories. The Company must comply with various environmental laws and regulations in the jurisdictions in which it operates, including those relating to air emissions, water discharges, the handling and disposal of solid and hazardous wastes and the remediation of contamination associated with the use and disposal of hazardous substances.

Replacing Sysco with Clorox shares is the last step in realigning my stock portfolio for 2010. For the remainder of the year I will be adding to my current positions and may add additional stocks, if I find any I believe will do well. In my next post, I will be listing my top 10 holdings for the beginning of 2010. As with all my postings, I will be doing this for informational purposes only. I do not recommend that anyone follow my investments or advice blindly. I do recommend doing your own research and finding investments that are right for you.