MKC vs SYY: Dividend Comparison
Dividend data as of
Mccormick & Co Inc (MKC) and Sysco Corp (SYY) are both in the Consumer Staples sector, making them natural rivals for dividend investors. Both stocks offer similar yields — MKC at 2.61% and SYY at 2.43%. For dividend growth, SYY leads with a 5-year CAGR of 10.9% versus MKC's 7.1%. SYY holds the edge in dividend safety with a "Safe" rating. MKC is a Dividend Aristocrat with 27 years of consecutive increases.
Verdict
Yield Analysis
MKC yields 0.18% more than SYY. In dollar terms, MKC pays $1.80/share vs SYY's $2.13/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%).
SYY: Dividend growth is accelerating — the 3-year CAGR of 18.7% exceeds the 5-year rate of 10.9% and the 10-year rate of 9.5%.
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.
SYY: The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in MKC vs SYY 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 $90.70 per share, $10,000 buys about 110.2 shares of Sysco Corp (SYY). Each share pays $2.13 per year in dividends, so the position starts out generating roughly $235 per year — about $20 a month.
MKC is the larger income stream from day one: $15 per year more on the same $10,000 invested.
What could $10,000 of MKC or SYY 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.
Sysco Corp (SYY) has raised its dividend about 10.9% a year over the past five years. If that pace held, the $243 per year that $10,000 generates today at the current 2.43% yield would reach $682 per year by 2036 — a 6.8% yield on the original cost.
On those trailing rates, SYY pays more in 2036: $682 versus $519 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SYY's dividend growth overtake MKC's higher yield?
Sysco Corp (SYY) yields less today (2.43% vs 2.61%) but has grown its dividend faster — 10.9% vs 7.1% a year over the past five years. If both trends continued, a $10,000 position in SYY would start out-earning the same position in MKC around 2029 (roughly 3 years from now), paying about $331 per year at the crossover. Before that point, MKC pays more each year; after it, the gap compounds in SYY's favor.
Can MKC and SYY 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).
Sysco Corp (SYY) earns $3.71 per share against $2.13 paid out in dividends — 1.7x coverage (a 57% 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 SYY?
For income you need right now, Mccormick & Co Inc (MKC) leads: $100,000 invested today pays about $218 a month at the current 2.61% yield, versus $203 a month from Sysco Corp (SYY) at 2.43%.
With a decade or more before the income is needed, SYY's faster dividend growth (10.9% vs 7.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
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 $867/yr in SYY 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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