Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, spices and seasonings specialist McCormick & Co.
With that in mind, let's take a closer look at McCormick's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Sparks, Md. (1889)|
|Market Cap||$5.7 billion|
|Industry||Packaged foods and meats|
|Trailing-12-Month Revenue||$3.3 billion|
CEO Alan Wilson (since 2008)
CFO Gordon Stetz, Jr. (since 2007)
|Return on Equity (Average, Past 3 Years)||23.6%|
|Cash/Debt||$43.0 million / $977.2 million|
International Flavors & Fragrances
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 297 members who have rated McCormick believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent and rd80, both of whom are ranked in the top 2% of our community.
Just two weeks ago, mrindependent tapped McCormick as a particularly tasty income opportunity:
Stable stocks should look appealing given the uncertain economic future for developed economies. The current dividend yield of McCormick & Company is about 2.5%. Current ROE is 26% and the stock is trading for just 16 times expected earnings. The current payout ratio is 0.4 and the five year average payout ratio is 0.4
While McCormick's shares trade at a price-to-cash flow of 15.7 -- a premium to rival International Flavors (11.9), as well as other dividend-paying food stocks like Kraft
McCormick is a classic stock for investors who want income and have little tolerance for wild swings in the market.
It isn't a super high yielder. ... But it has an excellent track record of raising that dividend every year and the payout ratio is a very reasonable 41%.
Solid balance sheet, decent income, a pinch of growth, easy on the volatility is a recipe for a green thumb in an uncertain economy.
What do you think about McCormick, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. McCormick is a Motley Fool Income Investor pick. PepsiCo is also an Income Investor choice, and Motley Fool Options has recommended a diagonal call position on it. Unilever is a choice of both Income Investor and Global Gains. Try any of our Foolish newsletter services free for 30 days.
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