McCormick Raises Quarterly Dividend: A Look at Its Growth Strategy

McCormick & Company, Incorporated (MKC) has raised the quarterly dividend by 3 cents or 6.7% to 48 cents per share. The next dividend payment is scheduled for Jan. 12, 2026, for its shareholders on record as of Dec. 29, 2025.This highlights the company's 102nd year of continuous dividend payments and the 40th consecutive year of a quarterly dividend hike, demonstrating its long-standing commitment to returning cash to shareholders.McCormick has made notable strides in strengthening its financial foundation and increasing shareholder value. In the first nine months of fiscal 2025, the company returned $362.2 million to its shareholders through dividends, while net cash provided by operating activities totaled $420.2 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 continues to operate from a position of category strength, driven by sustained volume-led growth and resilient demand for flavor across global markets. The company’s investments in innovation, expanded distribution and brand marketing have supported share gains in core categories, including spices, seasonings and sauces. These initiatives are helping McCormick stay aligned with evolving consumer behaviors such as home cooking, flavor exploration and health-focused meal preparation.McCormick delivered its fifth consecutive quarter of volume-led growth in the third quarter of fiscal 2025, supported by strong Consumer segment performance across the Americas and EMEA and continued momentum in core categories. While Asia-Pacific experienced softer foodservice demand in China, underlying volume in Flavor Solutions improved, fueled by QSR strength and rising demand in health and wellness categories. This performance underscores the company’s ability to meet shifting consumer needs while driving consistent volume gains.Apart from this, McCormick has been navigating a complex cost environment shaped by higher commodity prices and incremental tariffs, which continue to pressure margins. However, the company has been leveraging its Comprehensive Continuous Improvement program, targeted pricing actions and alternative sourcing strategies to help offset these challenges. Management has been committed to balancing growth investments with disciplined cost control, supporting long-term profitability while sustaining momentum across both Consumer and Flavor Solutions segments.MKC Stock Past Month PerformanceImage Source: Zacks Investment ResearchFinal Words on MKCMcCormick’s latest dividend increase underscores its long-standing commitment to dependable shareholder returns while advancing its strategy of volume-led growth. With continued momentum across core categories, expanding innovation initiatives and disciplined brand investment, the company has been strengthening its competitive position. Although rising commodity costs and tariffs pose challenges, McCormick’s efficiency programs and resilient cash generation reinforce management’s confidence in sustaining growth, making its blend of stability and strategic execution appealing for long-term investors.This Zacks Rank #3 (Hold) stock has lost 3.9% in a month compared with the industry’s decline of 8.4%.Top-Ranked StocksUnited Natural Foods, Inc. (UNFI) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.Lamb Weston Holdings, Inc. (LW) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average. The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.The Chefs' Warehouse, Inc. (CHEF) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently flaunts a Zacks Rank of 1. CHEF delivered a trailing four-quarter earnings surprise of 14.7%, on average.The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 8.1% and 29.3%, respectively, from the prior-year levels.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. 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(CHEF): Free Stock Analysis Report Lamb Weston (LW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks