Is a Raise Enough to Make This Dividend Stock a Buy?
Spice and condiment company McCormick & Company (NYSE: MKC) recently announced a 5% dividend raise, its 37th consecutive year of giving more money per share to investors. McCormick still dominates the spices aisle at your local grocery store, so if a rising dividend is your top priority, by all means, enjoy the raise.
However, the company's fundamentals show some concerns that could undermine McCormick's total return potential over the next several years. It's OK to be picky -- you should strive to own the best stocks for your portfolio. Here are three reasons why McCormick stock doesn't cut the mustard right now.
McCormick has long been a leader in spices and seasonings. It made a bold acquisition in 2017, spending $4.2 billion to buy Reckitt Benckiser's food business, which included French's mustard and Frank's Red Hot sauce. These leading brands fit into McCormick's overall business, but the problem is the debt the deal added to McCormick's balance sheet.
Source Fool.com
