#6 - McCormick (NYSE:MKC)
Food is one area where inflation tends to be the most sticky. However, McCormick & Company Inc. (NYSE: MKC) remains an attractive stock to consider if inflation moves higher.
The reason is that "food" doesn't just mean food you prepare at home. Since 2022, inflation-weary consumers have been in a tug-of-war between eating out versus eating at home. At first, it didn't matter as consumers were just ready to get back to their pre-pandemic routine. But restaurants have definitely raised their prices, and many consumers are swiftly pivoting back to a home-cooked meal.
McCormick benefited from this trend in 2020 as consumers had to restock their neglected spice drawers. And that doesn't even count the company's recent acquisitions, which have brought names like Frank's Red Hot and Cholula under its umbrella.
MKC stock trades at 23x forward earnings and is a Dividend Aristocrat, having increased its dividend for 37 consecutive years. That dividend currently has a yield of 2.5%.
About McCormick & Company, Incorporated
McCormick & Co, Inc engages in the manufacturing, marketing, and distribution of spices, seasoning mixes, condiments, and other flavorful products to retail outlets, food manufacturers, and foodservice businesses. It operates through the Consumer and Flavor Solutions segments. The Consumer segment sells spices, seasonings, condiments, and sauces.
More- Current Price
- $76.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $83.75 (9.0% Upside)
