McCormick & Company, Incorporated MKC has raised the quarterly dividend by three cents or 7.1% to 45 cents per share. The next dividend payment is scheduled for Jan. 13, 2025, for its shareholders on record as of Dec. 30, 2024.

This highlights the company's 101st year of continuous dividend payments and the 39th consecutive year of a quarterly dividend hike, demonstrating MKC’s long-term commitment to its shareholders and dedication to returning excess cash through consistent dividend increases.

McCormick has made notable strides in strengthening its financial foundation and increasing shareholder value. In the first nine months of fiscal 2024, the company returned $338.3 million to its shareholders through dividends, while net cash provided by operating activities totaled $463.2 million. The company remains focused on allocating cash toward growth investments, shareholder dividends and debt reduction while maintaining a strong investment-grade rating.

What More Should Investors Know About MKC?

McCormick has been seeing strong momentum driven by three key factors, long-term trends driving its categories, strong consumer interest in healthy and flavorful cooking and enthusiasm for flavor exploration and trusted brands. The company continues to bolster its position across major markets and core categories by focusing on growth levers such as brand marketing, product and packaging innovation, category management and proprietary technology. This innovation-led growth strategy aligns with McCormick’s long-term goal of capturing increased market share, especially in high-growth segments.

McCormick achieved positive volume growth in the third quarter of fiscal 2024, despite the challenging environment and anticipates this momentum to continue into the fourth quarter. The company experienced sequential volume improvements across both Consumer and Flavor Solutions segments, with the Consumer segment in the Americas, EMEA and Asia Pacific regions, excluding China, demonstrating solid volume growth. This growth indicates MKC's continued focus on innovation, alignment with consumer trends and expanding distribution.

Apart from this, the company has been benefiting from its cost-saving initiatives, which are aimed to fund future investments and drive operating margin expansion. The company’s Comprehensive Continuous Improvement and Global Operating Effectiveness programs are driving growth investments and operating margin expansion. For fiscal 2024, the company is focused on strengthening its volume trends and prioritizing investments to fuel profits. Management expects adjusted operating income to grow 4-6% in fiscal 2024, including minimal currency impacts.

Final Words on MKC

McCormick has been experiencing positive volume growth across both of its segments, Consumer and Flavor Solutions, implying its ongoing focus on innovation, alignment with consumer trends and expanding distribution. The company’s strong financial stability and dividend track record further highlight its resilience and potential for sustained growth. 

The Zacks Rank #2 (Buy) stock has risen 15.2% in a year against the industry’s decline of 1.2%.

Image Source: Zacks Investment Research

Other Stocks to Consider

Ingredion Incorporated INGR manufactures and sells sweeteners, starches, nutrition ingredients and biomaterial solutions derived from wet milling and processing corn and other starch-based materials. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

INGR has a trailing four-quarter earnings surprise of 9.5%, on average. The Zacks Consensus Estimate for Ingredion’s current-financial year’s earnings indicate growth of 12.5% from the year-ago reported number.

Freshpet, Inc. FRPT, together with its subsidiaries, manufactures, distributes and markets natural fresh meals and treats for dogs and cats, currently carrying a Zacks Rank #2. FRPT delivered an earnings surprise of 144.5% in the last reported quarter.

The Zacks Consensus Estimate for Freshpet’s current-fiscal year’s sales and earnings implies growth of 27.3% and 224.3%, respectively, from the year-ago reported number.

US Foods Holding Corp. USFD together with its subsidiaries, engages in marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank #2. USFD delivered an earnings surprise of 3.7% in the last reported quarter.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings indicates growth of 6.4% and 18.6%, respectively, from the prior-year reported levels.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Freshpet, Inc. (FRPT) : Free Stock Analysis Report

McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report

Ingredion Incorporated (INGR) : Free Stock Analysis Report

US Foods Holding Corp. (USFD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research