MKC vs WMT: Dividend Yield, Growth & Safety Comparison
Mccormick & Co Inc (MKC) and Walmart Inc. (WMT) are both in the Consumer Staples sector, making them natural rivals for dividend investors. MKC offers a significantly higher 2.61% yield compared to WMT's 0.72%, a gap of 1.89%. Both stocks show similar dividend growth rates, each around 7.1% over the past five years. WMT holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | MKC | WMT |
|---|
| Dividend Yield | 2.61% | 0.72% |
| Annual Dividend | $1.80 | $0.91 |
| 5-Year CAGR | 7.1% | 6.4% |
| Payout Ratio | 61% | 32% |
| Consecutive Years | 27 | 43 |
| Price | $71.91 | $133.79 |
Yield Comparison
Mccormick & Co Inc (MKC) currently yields 2.61%, which is solid for the broader market. That's 1.89% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, MKC pays $1.80/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, MKC has grown its dividend at a 7.1% CAGR compared to WMT's 6.4%. 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%). WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. WMT's payout ratio of 32% is more conservative than MKC's 61%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in MKC generates approximately $261/year in dividend income, compared to $72/year from WMT — a difference of $189/year. At $100,000, that gap widens to $1890/year.
Verdict
- Best for income: MKC
- Best for growth: MKC
- Best for safety: WMT
Frequently Asked Questions
Which has a higher dividend yield, MKC or WMT?
Mccormick & Co Inc (MKC) has a higher dividend yield of 2.61% compared to Walmart Inc. (WMT) at 0.72%.
Is MKC or WMT a better dividend growth stock?
Mccormick & Co Inc has the stronger dividend growth with a 5-year CAGR of 7.1%, compared to Walmart Inc.'s 6.4%.
Which is safer for dividend income, MKC or WMT?
Mccormick & Co Inc's dividend safety is rated "Moderate" while Walmart Inc. 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 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in MKC vs WMT generate?
A $10,000 investment in MKC generates approximately $261/year in dividends, while the same amount in WMT generates about $72/year.
Is MKC or WMT a Dividend Aristocrat?
Mccormick & Co Inc is a Dividend Aristocrat (27 years) and Walmart Inc. is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, MKC or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to Mccormick & Co Inc's 61%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MKC vs WMT: which is better for retirement income?
It depends on your priorities. MKC for current income, MKC for dividend growth, WMT for safety. Many retirement investors hold both for diversification.
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