This Consumer Staple Is Cheap Again....

Inflation-Beating Dividend Growth And A Low Payout Ratio!

September 15, 2025

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Here’s a stock with something for everyone.

15-20% upside for the traders. A lengthy, inflation-beating dividend history for the buy-and-holders. And a portfolio of fantastic products for the “invest in what you like” crowd.

McCormick & Company, Incorporated ($MKC) makes spices, seasonings, condiments, and other culinary products. They own a number of recognizable brands, including: French’s, Frank’s RedHot, Lawry’s, and OLD BAY. Additionally, the company markets products under the McCormick & Company brand.

Personally, I love McCormick & Company spices and seasonings, as well as their lime mayonnaise, their jams and jellies, and their tea.

I’m also a long-time shareholder of McCormick & Company stock.

And while spices and seasonings may sound like a simple business, McCormick shares are surprisingly volatile. This stock often oscillates between $67 and $85.

Depending on when you invest, you can often gain an extra 15-20% in capital appreciation just by buying the dip and holding until shares recover. In fact, the last time I bought McCormick stock, I purchased shares in June, 2024 for around $68 per share. By September, McCormick was back to over $83 per share, and my investment had appreciated by more than 21%.

While usually not into trading, I will say that McCormick & Company is one of the few blue chip stocks that routinely provides short-term opportunities for double-digit gains.

And as a buy-and-hold investment, McCormick & Company provides a decent starting yield as well as inflation-beating dividend growth.

The company currently trades at a price to earnings ratio of 22.61 while yielding a 2.61% starting dividend. Additionally, McCormick & Company has a 5-year compound annual dividend growth rate of 7.82% and a fairly low payout ratio of 59.59%.

Since it is a volatile stock that’s currently in sell-off mode, McCormick & Company’s 10-year average annual total returns aren’t particularly great.

At the time of writing, the company has delivered a 10-year average annual total return of 7.30%. However, it is worth noting that McCormick stock is down -11.53% year-to-date. And the company is down over -20% from its year-to-date high.

I don’t write “trade of the day” content or give financial advice.

But…

From my own personal perspective, McCormick & Company stock is currently trading at $67.35 per share. And this looks like a good opportunity, either as a long-term buy-and-hold dividend investment or as a short-term trade with double-digit rebound potential.

McCormick & Company Fast Facts

  • Forward PE ratio of 22.61

  • 2.61% starting dividend yield

  • 5-year dividend CAGR of 7.82%

  • Payout ratio of 59.59%

  • 10-year average annual total return of 7.30%

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.