How Much Did McCormick Return to Shareholders in Fiscal 1Q16?



Dividend paid

McCormick & Company (MKC) has a dividend yield of 1.6% as of March 30, 2016. The company’s management has raised the dividend at an average annual rate of 9.2% over five years. For 2015, the company gave a total of $1.60 per share to shareholders in the form of dividends.

McCormick returned $102 million in cash to shareholders through dividends and share repurchases in fiscal 1Q16. Capital expenditures were $22 million in the first quarter. Out of the $600 million share repurchase authorization, $522 million remained at the end of the first quarter. The company paid a dividend of $0.43 per share on January 15 to shareholders of record on December 29, 2015.

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The company anticipates another year of strong cash flows in fiscal 2016. It expects to return a portion of it to shareholders through dividends and share repurchases. Management mentioned that the company’s balance sheet remains sound, and the company is generating strong cash flow and is well positioned to fund future investments to drive growth.

Recent dividend declared

On March 30, one day after the fiscal 1Q16 earnings release, McCormick’s Board of Directors declared a quarterly dividend of $0.43 per share on its common stock. This will be paid on April 25, 2016, to shareholders of record on April 11, 2016. This year marks the 92nd year of consecutive dividend payments by the company.

McCormick’s peers include Bunge (BG), ConAgra Foods (CAG), J.M. Smucker (SJM), and Flowers Foods (FLO). Theeir stocks have risen 13.0%, 9.5%, and 8.7%, respectively, in 2016, as of March 29. The Vanguard Consumer Staples ETF (VDC) invests 0.79% of its portfolio in SJM.


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