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McCormick (MKC) Rewards Investors With 7.7% Dividend Hike
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McCormick & Company, Incorporated (MKC - Free Report) has announced an increase in its dividend, demonstrating its ongoing commitment to providing value to its shareholders. The company has approved a 7.7% rise in the quarterly cash dividend, elevating it from 39 cents to 42 cents per share.
This enhanced dividend is scheduled for distribution on Jan 8, 2024, to shareholders of record as of Dec 29, 2023. This decision reflects McCormick's robust financial health and capability to consistently generate reliable cash flows.
Notably, MKC has maintained a steady practice of paying quarterly cash dividends for 98 years since 1925. This uninterrupted streak of dividend payments through various economic cycles highlights the company's enduring resilience and financial solidity.
This year marks the 38th consecutive annual increase in McCormick's dividend, illustrating the company's wise management and strategic commitment to rewarding its stakeholders. This latest dividend increase also sends a clear message about its confidence in its future success and preparedness.
Image Source: Zacks Investment Research
What’s More?
The company’s effective pricing strategy and improved underlying business volume trends keep it well-positioned for growth. These upsides drove its third-quarter fiscal 2023 sales of $1,684.7 million, which increased 6% year over year. Constant-currency (cc) sales growth was backed by the 8% gain from pricing actions.
McCormick exited the quarter with cash and cash equivalents of $154.7 million, and total shareholders’ equity of $5,070.1 million. Through the third quarter of fiscal 2023, net cash provided by operating activities was $660 million.
Management expects to generate a robust cash flow in fiscal 2023, wherein it is likely to return a considerable part of its cash flow to shareholders via dividends.
Wrapping Up
McCormick has been grappling with cost inflation for a while now. SG&A expenses escalated year over year due to elevated employee incentive compensation expenses, and increased distribution and brand marketing costs. Shares of this Zacks Rank #4 (Sell) company have lost 23.7% in the past year as compared to the industry’s decline of 15.3%.
Nonetheless, McCormick's decision to increase its quarterly dividend is a testament to its financial strength, long-term commitment to shareholders and confidence in its prospects.
Bet Your Bucks on These 3 Hot Stocks
We have highlighted three better-ranked stocks, namely Lamb Weston Holdings, Inc. (LW - Free Report) , Celsius Holdings, Inc. (CELH - Free Report) and Freshpet Inc. (FRPT - Free Report) .
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries. It also provides a range of appetizers. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston Holdings’ current fiscal-year sales and EPS suggests growth of 28.3% and 24.8%, respectively, from the year-ago reported figures. LW has a trailing four-quarter earnings surprise of 46.2%, on average.
Celsius Holdings specializes in commercializing healthier, nutritional, and functional foods, beverages and dietary supplements. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and EPS suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported figures. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.
Freshpet is a pet food company. The company manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS suggests growth of 26.8% and 27.1%, respectively, from the year-ago reported figures. FRPT has a trailing four-quarter earnings surprise of 7%, on average.
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McCormick (MKC) Rewards Investors With 7.7% Dividend Hike
McCormick & Company, Incorporated (MKC - Free Report) has announced an increase in its dividend, demonstrating its ongoing commitment to providing value to its shareholders. The company has approved a 7.7% rise in the quarterly cash dividend, elevating it from 39 cents to 42 cents per share.
This enhanced dividend is scheduled for distribution on Jan 8, 2024, to shareholders of record as of Dec 29, 2023. This decision reflects McCormick's robust financial health and capability to consistently generate reliable cash flows.
Notably, MKC has maintained a steady practice of paying quarterly cash dividends for 98 years since 1925. This uninterrupted streak of dividend payments through various economic cycles highlights the company's enduring resilience and financial solidity.
This year marks the 38th consecutive annual increase in McCormick's dividend, illustrating the company's wise management and strategic commitment to rewarding its stakeholders. This latest dividend increase also sends a clear message about its confidence in its future success and preparedness.
Image Source: Zacks Investment Research
What’s More?
The company’s effective pricing strategy and improved underlying business volume trends keep it well-positioned for growth. These upsides drove its third-quarter fiscal 2023 sales of $1,684.7 million, which increased 6% year over year. Constant-currency (cc) sales growth was backed by the 8% gain from pricing actions.
McCormick exited the quarter with cash and cash equivalents of $154.7 million, and total shareholders’ equity of $5,070.1 million. Through the third quarter of fiscal 2023, net cash provided by operating activities was $660 million.
Management expects to generate a robust cash flow in fiscal 2023, wherein it is likely to return a considerable part of its cash flow to shareholders via dividends.
Wrapping Up
McCormick has been grappling with cost inflation for a while now. SG&A expenses escalated year over year due to elevated employee incentive compensation expenses, and increased distribution and brand marketing costs. Shares of this Zacks Rank #4 (Sell) company have lost 23.7% in the past year as compared to the industry’s decline of 15.3%.
Nonetheless, McCormick's decision to increase its quarterly dividend is a testament to its financial strength, long-term commitment to shareholders and confidence in its prospects.
Bet Your Bucks on These 3 Hot Stocks
We have highlighted three better-ranked stocks, namely Lamb Weston Holdings, Inc. (LW - Free Report) , Celsius Holdings, Inc. (CELH - Free Report) and Freshpet Inc. (FRPT - Free Report) .
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries. It also provides a range of appetizers. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston Holdings’ current fiscal-year sales and EPS suggests growth of 28.3% and 24.8%, respectively, from the year-ago reported figures. LW has a trailing four-quarter earnings surprise of 46.2%, on average.
Celsius Holdings specializes in commercializing healthier, nutritional, and functional foods, beverages and dietary supplements. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and EPS suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported figures. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.
Freshpet is a pet food company. The company manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS suggests growth of 26.8% and 27.1%, respectively, from the year-ago reported figures. FRPT has a trailing four-quarter earnings surprise of 7%, on average.