MKC vs SYY: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | MKC | SYY |
|---|
| Dividend Yield | 2.61% | 2.43% |
| Annual Dividend | $1.80 | $2.13 |
| 5-Year CAGR | 7.1% | 10.9% |
| Payout Ratio | 61% | 57% |
| Consecutive Years | 27 | 0 |
| Price | $71.91 | $90.70 |
Yield Comparison
Mccormick & Co Inc (MKC) currently yields 2.61%, which is solid for the broader market. That's 0.18% more than Sysco Corp (SYY), which yields 2.43%. In dollar terms, MKC pays $1.80/share annually versus SYY's $2.13/share.
Dividend Growth
Over the past five years, SYY has grown its dividend at a 10.9% 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%). 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'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. SYY's dividend safety is rated "Safe." The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. Both have similar payout ratios — MKC at 61% and SYY at 57%.
Income Comparison
A $10,000 investment in MKC generates approximately $261/year in dividend income, compared to $243/year from SYY — a difference of $18/year. At $100,000, that gap widens to $180/year.
Verdict
- Best for income: MKC
- Best for growth: SYY
- Best for safety: SYY
Frequently Asked Questions
Which has a higher dividend yield, MKC or SYY?
Mccormick & Co Inc (MKC) has a higher dividend yield of 2.61% compared to Sysco Corp (SYY) at 2.43%.
Is MKC or SYY a better dividend growth stock?
Sysco Corp has the stronger dividend growth with a 5-year CAGR of 10.9%, compared to Mccormick & Co Inc's 7.1%.
Which is safer for dividend income, MKC or SYY?
Mccormick & Co Inc's dividend safety is rated "Moderate" while Sysco Corp is rated "Safe." 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 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in MKC vs SYY generate?
A $10,000 investment in MKC generates approximately $261/year in dividends, while the same amount in SYY generates about $243/year.
Is MKC or SYY a Dividend Aristocrat?
Mccormick & Co Inc is a Dividend Aristocrat with 27 consecutive years of increases. Sysco Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, MKC or SYY?
Sysco Corp has a lower payout ratio of 57% compared to Mccormick & Co Inc's 61%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MKC vs SYY: which is better for retirement income?
It depends on your priorities. MKC for current income, SYY for dividend growth, SYY for safety. Many retirement investors hold both for diversification.
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