MKC vs PG: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | MKC | PG |
|---|
| Dividend Yield | 2.61% | 2.63% |
| Annual Dividend | $1.80 | $4.18 |
| 5-Year CAGR | 7.1% | 12.5% |
| Payout Ratio | 61% | 62% |
| Consecutive Years | 27 | 0 |
| Price | $71.91 | $160.56 |
Yield Comparison
PROCTER & GAMBLE Co (PG) currently yields 2.63%, which is solid for the broader market. Mccormick & Co Inc (MKC) yields a nearly identical 2.61%. In dollar terms, PG pays $4.18/share annually versus MKC's $1.80/share.
Dividend Growth
Over the past five years, PG has grown its dividend at a 12.5% CAGR compared to MKC's 7.1%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "Moderate." 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. Both have similar payout ratios — MKC at 61% and PG at 62%.
Income Comparison
A $10,000 investment in PG generates approximately $263/year in dividend income, compared to $261/year from MKC — a difference of $2/year. At $100,000, that gap widens to $20/year.
Verdict
Frequently Asked Questions
Which has a higher dividend yield, MKC or PG?
PROCTER & GAMBLE Co (PG) has a higher dividend yield of 2.63% compared to Mccormick & Co Inc (MKC) at 2.61%.
Is MKC or PG a better dividend growth stock?
PROCTER & GAMBLE Co has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Mccormick & Co Inc's 7.1%.
Which is safer for dividend income, MKC or PG?
Mccormick & Co Inc's dividend safety is rated "Moderate" while PROCTER & GAMBLE Co is rated "Moderate." 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. 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.
How much income does $10,000 in MKC vs PG generate?
A $10,000 investment in MKC generates approximately $261/year in dividends, while the same amount in PG generates about $263/year.
Is MKC or PG a Dividend Aristocrat?
Mccormick & Co Inc is a Dividend Aristocrat with 27 consecutive years of increases. PROCTER & GAMBLE Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, MKC or PG?
Mccormick & Co Inc has a lower payout ratio of 61% compared to PROCTER & GAMBLE Co's 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MKC vs PG: which is better for retirement income?
It depends on your priorities. PG for dividend growth. Many retirement investors hold both for diversification.
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