MKC vs PG: Dividend Comparison
Dividend data as of
Mccormick & Co Inc (MKC) and PROCTER & GAMBLE Co (PG) are both in the Consumer Staples sector, making them natural rivals for dividend investors. Both stocks offer similar yields — MKC at 2.61% and PG at 2.63%. For dividend growth, PG leads with a 5-year CAGR of 12.5% versus MKC's 7.1%. Both stocks carry a "Moderate" dividend safety rating. MKC is a Dividend Aristocrat with 27 years of consecutive increases.
Verdict
Yield Analysis
PG yields 0.02% more than MKC. In dollar terms, MKC pays $1.80/share vs PG's $4.18/share annually.
Dividend Growth
MKC: Dividend growth has been steady, with a 3-year CAGR of 7.3% and a 5-year CAGR of 7.1% (10-year: 8.5%).
PG: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 12.5% and the 10-year rate of 8.5%.
Dividend Safety
MKC: The payout ratio of 61% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
PG: The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in MKC vs PG today?
At $71.91 per share, $10,000 buys about 139.1 shares of Mccormick & Co Inc (MKC). Each share pays $1.80 per year in dividends, so the position starts out generating roughly $250 per year — about $21 a month.
At $160.56 per share, $10,000 buys about 62.3 shares of PROCTER & GAMBLE Co (PG). Each share pays $4.18 per year in dividends, so the position starts out generating roughly $260 per year — about $22 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of MKC or PG income look like in 10 years?
Mccormick & Co Inc (MKC) has raised its dividend about 7.1% a year over the past five years. If that pace held, the $261 per year that $10,000 generates today at the current 2.61% yield would reach $519 per year by 2036 — a 5.2% yield on the original cost.
PROCTER & GAMBLE Co (PG) has raised its dividend about 12.5% a year over the past five years. If that pace held, the $263 per year that $10,000 generates today at the current 2.63% yield would reach $851 per year by 2036 — a 8.5% yield on the original cost.
On those trailing rates, PG pays more in 2036: $851 versus $519 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can MKC and PG afford their dividends?
Mccormick & Co Inc (MKC) earns $2.93 per share against $1.80 paid out in dividends — 1.6x coverage (a 61% payout ratio).
PROCTER & GAMBLE Co (PG) earns $6.75 per share against $4.18 paid out in dividends — 1.6x coverage (a 62% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, MKC or PG?
For income you need right now, PROCTER & GAMBLE Co (PG) leads: $100,000 invested today pays about $219 a month at the current 2.63% yield, versus $218 a month from Mccormick & Co Inc (MKC) at 2.61%.
PG also leads on dividend growth (12.5% vs 7.1% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: MKC has raised its dividend 27 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $672/yr in MKC vs $1,103/yr in PG by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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