- McCormick & Company is a Dividend Champion with 33 consecutive years of dividend growth. Shares currently yield 1.22%.
- The cook-at-home trend since the onset of the COVID-19 pandemic has benefited the company's heavy consumer-focused spices and seasonings business.
- The current share price implies a much rosier future than what is likely to happen and suggests that long-term investors should consider ringing the register.
McCormick & Company (MKC) is the largest player in the spice and flavorings sector, commanding ~20% market share. Roughly 80% of sales come from the consumer side, with the remaining 20% coming from the food service segment. The consumer side has seen a big boost due to the COVID-19 and the stay-at-home trend, and the share price has benefited greatly since the March lows.
Data by YChartsDividend History
For the core of my portfolio, I want to invest in quality businesses that have proven themselves over time. Often, a quick screen for that is the dividend history that company has amassed. A lengthy streak of growing dividends can help weed out the investment opportunities and help you narrow your focus.
Image by author; data source McCormick & Company Investor Relations
According to the CCC list, McCormick is a Dividend Champion with 33 consecutive years of dividend increases. The dividend growth streak dates back to 1987.
During McCormick's streak, year-over-year dividend growth has ranged from 5.0% to 35.7%, with an average of 12.1% and a median of 9.4%.
The rolling 5-year dividend growth rates during the company's streak have ranged from 7.0% to 237.1%, with an average of 11.9% and a median of 9.2%. The rolling 10-year dividend growth rates have ranged from 7.7% to 17.7%, with an average of 11.0% and a median of 10.3%.
