McCormick Ups Dividend by 11% - Analyst Blog
November 23 2011 - 12:08PM
Zacks
In order to return value to its shareholders, McCormick
& Company (MKC) has raised its dividend by 3 cents to
31 cents a share.
The new dividend is payable on January 13, 2012, to shareholders
of record at the close of business on December 30, 2011. McCormick,
a global leader in flavor, has successively increased its dividend
26 times.
In the recently concluded third-quarter, McCormick generated
$85.7 million of cash from operations. It was, however, lower from
the prior levels on account of increases in inventory. About $58.8
million of capital expenditure were incurred during the
quarter.
Cash and cash equivalents were $52.2 million at the end of
August 31, 2011, while long-term debt was $1.03 billion.
Like McCormick, the world’s leading retail of food and related
goods retailer Sysco Corporation (SYY) has raised
its dividend by a penny to 27 cents a share on November 20 and
announced a share repurchase program of 20 million common shares.
The new dividend is payable on January 27, 2012, to common
shareholders of record at the close of business on January 6,
2012.
McCormick, which manufactures, markets and distributes spices,
seasoning mixes, condiments and other flavorful products to the
entire food industry, posted third-quarter 2011 operating earnings
of 69 cents a share on September 28, surpassing the Zacks Consensus
Estimate of 64 cents, benefiting from higher operating income, as
well as cost savings from Comprehensive Continuous Improvement
initiatives.
Further, new product innovation, distribution gains and
increased investment in brand marketing also led to the growth.
Management reaffirmed its fiscal 2011 earnings per share guidance
in the range of $2.74 to $2.79, including the impact of the
acquisitions and the joint venture. Sales are expected to grow 6 to
8% in local currency, with the sales impact from favorable currency
exchange rates at 2%.
McCormick, which competes with ConAgra Foods,
Inc. (CAG) and Kraft Foods Inc. (KFT)
currently holds a Zacks #3 Rank translating into a short-term
‘Neutral’ rating. Over the long term, we provide a Neutral
recommendation on the stock.
CONAGRA FOODS (CAG): Free Stock Analysis Report
KRAFT FOODS INC (KFT): Free Stock Analysis Report
MCCORMICK & CO (MKC): Free Stock Analysis Report
SYSCO CORP (SYY): Free Stock Analysis Report
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