McCormick dividend
MyStockButler's October 2026 analysis: McCormick paid $483.0 million in dividends in 2025, up from $363.3 million in 2021. McCormick’s $740.4 million of 2025 free cash flow covered the dividend and $34.8 million of buybacks, leaving $222.6 million.
How much does McCormick pay per share over the years shown?
The dividend was the clearest recurring claim on that cash. Dividends rose from $363.3 million in 2021 to $483.0 million in 2025. McCormick also bought back $34.8 million of shares in 2025, leaving $222.6 million of that year’s free cash flow after those shareholder payments. In 2022, payouts exceeded free cash flow by $46.0 million. Strong 2023 cash flow also benefited from lower inventory: selling goods already in warehouses releases cash, but that benefit cannot continue indefinitely.
| Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 2.93 | 2.92 | 2.52 | 2.52 | 2.80 |
| Real free cash flow per share | 2.58 | 2.22 | 3.37 | 1.22 | 1.79 |
| − Dividends paid, per share | 1.79 | 1.67 | 1.55 | 1.47 | 1.35 |
| − Share buybacks, per share | 0.13 | 0.20 | 0.13 | 0.14 | 0.03 |
| = FCF not paid out, per share | 0.83 | 0.53 | 1.92 | 0.66 |
What this means. Real free cash flow per share is lower because it subtracts shares given to employees as pay, while free cash flow per share does not.
How much would McCormick's dividend pay you?
$10,000 invested in McCormick at its 4.0% dividend yield (our report of October 24, 2026) pays $400.00 in the first year, before tax. If its dividend per share keeps changing 7.3% a year, as it did from Nov 2021 to Nov 2025, and the dividends are reinvested, year 10 pays $1,210.13, with $7,246.40 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is McCormick’s dividend covered by its cash?
| Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 740.4 | 647.0 | 973.4 | 389.5 | 550.3 |
| − Dividends paid | 483.0 | 451.0 | 418.5 | 396.7 | 363.3 |
| − Share buybacks | 34.8 | 53.1 | 35.7 | 38.8 | 8.6 |
| = Free cash flow not paid out | 222.6 | 142.9 | 519.2 | 178.4 | |
| = Paid out more than the free cash flow | 46.0 |
What this means. In November 2022, the company paid shareholders more money than it generated, so it had to use savings or borrow to cover the shortfall.
What could change McCormick’s dividend?
Dividends grow cautiously in the base case, from $2.01 per share to $2.16 and then $2.32. The path reflects a quarterly increase from the current $0.48 rate while leaving cash for debt repayment. The bear case freezes the dividend at $1.92 annually because financing and integration absorb cash. The bull case reaches $2.04, $2.24 and $2.40 as synergies improve cash conversion. That requires more than the latest free-cash-flow cushion supports.
The UK Competition and Markets Authority’s first-stage decision is scheduled for November 11, 2026. The S-4, a filing that informs shareholders before a merger vote, and the shareholder vote are expected between Q4 2026 and Q1 2027. McCormick targets a mid-2027 close. Management expects about two-thirds of the $600 million annual net synergies by the second year after closing.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,210 (940 / 1,350) | 2,350 (1,800 / 2,600) | 2,570 (1,950 / 2,950) |
| Shares (millions) | 770 (269 / 770) | 770 (770 / 769) | 770 (771 / 769) |
| Dividends per share | 2.01 (1.92 / 2.04) | 2.16 (1.92 / 2.24) | 2.32 (1.92 / 2.40) |
| Price to earnings | 15.00 (11.00 / 18.00) | 15.00 (10.00 / 20.00) | 16.00 (9.00 / 22.00) |
What this means. The number of shares in October 2027 falls to 269 million in the bear case, which would mean the company has far fewer shares than in the other cases and may be a mistake.
What is McCormick’s dividend yield today against its share price?
The 15.0× next-twelve-month P/E is therefore a more useful starting point, though its forecast earnings still need scrutiny. Free cash flow yield is more tangible than the Mexico gain, while the dividend yield only shows the distribution relative to the share price. The central question is how much cash remains after dividends, integration spending and debt repayment.