Wednesday, May 13, 2015

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, 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.


  1. Thanks for the analysis PIP. Like the company and the consumer staples sector in general. When the timing is right ima load up on them. Keep up the hustle and hope little Luke gets well. Take care my friend.

    1. Hustler,

      Really like this company and I think it can be a great core holding. But now isn't the right time to add shares. Eventually we'll get better valuations and I'll be ready when that happens.

      Thanks for stopping by!

  2. Nicely done but the post title should have been "not the thyme" for MKC...

    1. FV,

      Yeah I had that but SA decided that was a typo.

  3. JC,
    Enjoyed this one as it's a company I want to own eventually. Wish that pun would have made the title. Usually they catch on to the clever titles over there.

  4. Hi Pip,
    MKC has been on my mind almost since I've started investing. It seems that it's rarely on sale. I reviewed it too in april and came to the sake conclusion : let's wait on the sidelines for now! :)
    Best regards,