McCormick Stock Remains a Buy-and-Hold Ahead of Earnings
Author: Tim Phillips
Date: October 4, 2022
Shares of spices and flavourings producer McCormick & Co Inc (NYSE: MKC) saw shares finish up 1.9% before its earnings next week. Here’s why it’s still a great buy-and-hold stock.
If anyone’s ever done any home cooking, or perhaps got the roaring barbeque going, then McCormick’s vast array of spices are most likely one of the first things on the shopping list.
The company’s instantly-recognisable little bright red-coloured spice bottles adorn supermarket shelves all over the world. Given all that, it’s still probably not a company investors are all that familiar with.
But they should be. That’s because the firm is one of the most reliable and steady earners around. The company’s history dates back to the 19th century so it’s been around for a while.
Beyond spices, it also produces a wide range of flavourings for the industrial and restaurant markets. On the financials side, it’s a Dividend Aristocrat – having increased its dividend now for 34 consecutive years.
Amazingly, the company has paid a dividend consistently for 96 years. But what about its business? The company suffered early on in the Covid-19 pandemic in the US as restaurants were shuttered.
Yet this fall in its “flavour solutions” segment, that includes supplying restaurants, the pick-up in its consumer-facing business more than made up for it as people stayed indoors and cooked (see below).
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