X
<

McCormick: Could It Spice Up Your Portfolio?

PART:
1 2 3 4 5 6 7
Part 5
McCormick: Could It Spice Up Your Portfolio? PART 5 OF 7

A Look at McCormick’s Strong Dividend History

Shareholder returns

McCormick (MKC) has a strong track record of rewarding investors with increased dividends and share buybacks. In fiscal 2016, which ended November 30, 2016, it returned $460.5 million to its shareholders in the form of $242.7 million in share buybacks and $217.8 million in dividends. In the past three fiscal years, McCormick has returned more than $1.0 billion to its shareholders in the form of dividends and share buybacks.

A Look at McCormick&#8217;s Strong Dividend History

Interested in MKC? Don't miss the next report.

Receive e-mail alerts for new research on MKC

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Dividend growth and yield

McCormick is a dividend aristocrat, which means it has increased its dividends for more than 25 years in a row. In fact, it has increased its dividends for 31 consecutive years. In November 2016, management announced a 9.3% hike in its quarterly dividend to $0.47, from $0.43.

In simple terms, dividend yield indicates how much cash flow investors could potentially receive for every dollar they invest in a company. McCormick’s current dividend yield is 1.9%, based on its closing price of $100.08 as of April 6, 2017.

By comparison, McCormick’s current dividend yield is lower than the yields for General Mills (GIS), ConAgra Brands (CAG), and JM Smucker (SJM) at 3.3%, 2.0%, and 2.2%, respectively.

Future returns

Although McCormick lags its peers in terms of dividend yield, the company has been increasing its dividends at a healthy rate. As part of its long-term strategy, management stated that investors can expect dividends to increase 9.0%–11.0% in the coming years, which is in line with its projected growth for its bottom line over the same period.

As a dividend aristocrat, McCormick is included in the holdings of the SPDR S&P Dividend ETF (SDY), which invests in companies that have grown their dividends for at least 20 consecutive years. SDY has about 0.90% of its holdings in McCormick.

In the next part of this series, we’ll focus on analyst ratings for McCormick.

X

Please select a profession that best describes you: