Maryland-based Spice and seasoning stock McCormick (MKC - Get Report) is another stock that looks ready to boost its dividend payout in the next quarter. Currently, MKC pays out a 31-cent check to investors each quarter, just shy of a 2% yield. Stair-step improvements in sales and profitability should help to increase MKC's dividend in kind.
McCormick owns an attractive stable of brands found in the grocery aisle. In addition to the firm's namesake spices, Zatarain's, Old Bay and Simply Asia are all well-known brands in MKC's stable. McCormick's reach goes beyond grocery -- it also serves restaurant chains and packaged food firms that use its seasonings in their respective products. Because few firms can boast MKC's operational expertise with spices, it's a go-to firm for clients who need help developing and mass-producing the seasonings they use in large-scale food manufacturing.International sales should continue to be a big growth engine for McCormick. While the firm has kept its share of sales from abroad nearly constant at 40%, it's managed to grow its emerging market sales by around 50% in the last year. Now these high-growth markets contribute 15% of total revenues, a number that should continue to grow as MKC pursues local demand for spices. That growth should help to support bigger dividend payouts in the next quarter. To see these dividend plays in action, check out the at Dividend Stocks for the Week portfolio on Stockpickr. And if you haven't already done so, join Stockpickr today to create your own dividend portfolio. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts