Money and Finance
I mentioned in my dividend growth checkup that my plan for the year was to allocate less capital to the consumer staples due to their general overvaluation. However, that doesn't mean that I won't identify excellent companies with large moats within the consumer staples for purchase at more opportune times. McCormick & Company (NYSE:MKC) is a dividend champion having increased dividends for 29 consecutive years and have paid dividends for the last 125 years. There's no doubt about McCormick & Company's quality as a company; however, investors are valuing MKC at a premium. McCormick & Company closed trading on Monday, May 11th at $76.91 giving a current yield of 2.08%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from McCormick & Company, Inc.'s investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:
Historically, owners of McCormick & Company have earned solid returns. According to longrundata.com, MKC has rewarded investors with a total return of 283% or 11.0% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the operational results that McCormick & Company has delivered.
You can read the full analysis of McCormick & Company, Inc. at Seeking Alpha.
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Money and Finance
Now's Not the Time for McCormick & Company, Inc.
I mentioned in my dividend growth checkup that my plan for the year was to allocate less capital to the consumer staples due to their general overvaluation. However, that doesn't mean that I won't identify excellent companies with large moats within the consumer staples for purchase at more opportune times. McCormick & Company (NYSE:MKC) is a dividend champion having increased dividends for 29 consecutive years and have paid dividends for the last 125 years. There's no doubt about McCormick & Company's quality as a company; however, investors are valuing MKC at a premium. McCormick & Company closed trading on Monday, May 11th at $76.91 giving a current yield of 2.08%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from McCormick & Company, Inc.'s investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:
Historically, owners of McCormick & Company have earned solid returns. According to longrundata.com, MKC has rewarded investors with a total return of 283% or 11.0% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the operational results that McCormick & Company has delivered.
You can read the full analysis of McCormick & Company, Inc. at Seeking Alpha.
- 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...
- Colgate-palmolive Co.: Excellent Company But How's The Valuation?
When volatility in the markets increases that leads many investors to look for defensive investments that will hold up during a market downturn. Consumer staples are some of the best options when it comes to holding up in a declining market as well as...
- Filling Your Portfolio With The J. M. Smucker Company
At this point I don't think anyone has escaped notice that the markets have been on a whirlwind over the past week with the DJIA dropping almost 1,100 points in early trading Monday morning. However, that just means that excellent companies are offering...
- Does The Coca-cola Company Still Have The Recipe For Out-sized Returns?
There's no mistake that one of the greatest wealth creators of the last century is The Coca-Cola Company (NYSE:KO). With 20 different beverage brands generating over a billion dollars in annual revenues they are the envy of plenty of companies. Especially...
- Sweetening Your Portfolio With The Hershey Company Dividends
The Hershey Company (NYSE:HSY) has a rich history of rewarding shareholders with growing profits and increasing dividends. The Hershey Company gets overlooked to their short dividend growth streak of 5 years after holding the dividend steady during the...