Money and Finance
Consumer staples companies typically make for excellent dividend growth candidates. In general, they have rather inelastic demand that doesn't see operations fluctuate with the health of the economy, at least not to the degree that other sectors do. It's the stable nature of the business that makes them for attractive investments for the defensive portion of your portfolio.
Thanksgiving will be here before we know it, so I wanted to take a look at the leading spices and flavors company in the world, McCormick & Company (NYSE:MKC). I looked at the company in May and determined the shares were overvalued. It's been six months; how does the valuation stack up now for this high-quality consumer staple?
Potential Earnings and Dividend Growth
Let's get some general information out of the way before we jump into the analysis. My reference entry price will be the closing price from November 5th, $85.86, with a purchase date of November 6th. McCormick & Company will pay no more dividends this year but still has one more that will go on record as a fiscal year 2015 payment. The current quarterly dividend rate is $0.40 and based on the consensus estimate of $3.47 for the current fiscal year the payout ratio will come to 46.1%.
Continue reading the McCormick & Company stock analysis on Seeking Alpha.
Also to see more of my analyses make sure you check out my Stock Analysis page.
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Money and Finance
6 Months Later, Still Not The Time For McCormick
Consumer staples companies typically make for excellent dividend growth candidates. In general, they have rather inelastic demand that doesn't see operations fluctuate with the health of the economy, at least not to the degree that other sectors do. It's the stable nature of the business that makes them for attractive investments for the defensive portion of your portfolio.
Thanksgiving will be here before we know it, so I wanted to take a look at the leading spices and flavors company in the world, McCormick & Company (NYSE:MKC). I looked at the company in May and determined the shares were overvalued. It's been six months; how does the valuation stack up now for this high-quality consumer staple?
Potential Earnings and Dividend Growth
Let's get some general information out of the way before we jump into the analysis. My reference entry price will be the closing price from November 5th, $85.86, with a purchase date of November 6th. McCormick & Company will pay no more dividends this year but still has one more that will go on record as a fiscal year 2015 payment. The current quarterly dividend rate is $0.40 and based on the consensus estimate of $3.47 for the current fiscal year the payout ratio will come to 46.1%.
Continue reading the McCormick & Company stock analysis on Seeking Alpha.
Also to see more of my analyses make sure you check out my Stock Analysis page.
- Church & Dwight Co Inc.: Dividends Will Satisfy, Total Returns Look Dirty
One of my goals for the year was to increase my exposure to consumer staples companies in my portfolio. Consumer staples tend to have less fluctuations in their operations compared to other sectors of the economy. They also typically have pricing power...
- Hormel Foods Corporation: Valuation Matters
One of my goals for the year was to increase the amount of capital I have invested in consumer staples companies. I like the consumer staples because of the fact that their businesses are rather boring and don't fluctuate much based on the state...
- Pepsico Inc.: You're Paying Up For This Consumer Staple
Consumer staples companies are the bread and butter of the dividend growth philosophy. The biggest reason for that is the consistency in their operations. In general they have rather inelastic demand compared to other sectors of the economy and for the...
- General Mills: Buy The Products Not The Stock
Consumer staples companies make for excellent dividend growth investments due to their steady nature. I mean we're all going to continue to eat even if the economy isn't exactly firing on all cylinders. That's why you see some pretty hefty...
- You Can't Clean Up A Messy Valuation: The Clorox Company Dividend Stock Analysis
Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input...