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Re: Weekly Stock Market Observation

By: Decomposed in 6TH POPE | Recommend this post (0)
Mon, 07 Mar 22 12:10 AM | 25 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 30070 of 58654
(This msg. is a reply to 30066 by Zimbler0)
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Zimbler0:

Re: “But others, like MKC are outperforming.”Before I even got to that sentence, I was already thinking of MKC as a hedge against inflation. It makes perfect sense: During periods of rising prices, more people are going to stay home instead of dining out. The more who stay home, the more McCormick products they'll use. Looking at its products https://www.mccormickcorporation.com/en/brands , it seems that all or nearly all are used by people who cook. I'm not seeing potato chips or bread companies. IMO, that's a great line of business in times like these. More people are cooking at home. McCormick's customer base is growing at a time when most are shrinking.

I don't think that about Clorox, btw. I think CLX has done well because of the pandemic. With the pandemic ending, won't people be buying less bleach? Even worse, in an inflationary period, won't people who are pinched for money shift from a name brand like Clorox to generics like Kirkland or Signature Select?

It's good to diversify, but I think I might sell my Clorox shares and put the money into something else. Maybe even more McCormick.

Look at the chart below. CLX soared with the initial pandemic and has suffered ever since. It has now given back all of its gains and I think the downturn may continue. Don't be surprised if the company reduces its dividend.




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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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Re: Weekly Stock Market Observation
By: Zimbler0 in 6TH POPE
Sun, 06 Mar 22 9:46 PM 		Msg. 30066 of 58654

Decomposed > I do however wonder if you've evaluated your performance versus inflation?


No, I haven't actually compared my holdings to inflation. However, up till this current bout of high inflation I would have said that overall I was staying well ahead of inflation.

Some of my holdings are probably not holding up to inflation . . .

But others, like MKC are outperforming.

Ten years ago McCormick share price (according to BigCharts) was under $30 a share and today it is over $100 a share. The dividend is listed as going from about 15 cents a share to over 30. There was also a 2:1 stock split looks like in 2020.

Just so you know, I starting buying my McCormick back in 2007. Today it is worth an even four times what I paid for it. Plus about a third more for the dividend checks I have received and spent.

Clorox? Somewhere around $70 a share ten years ago to $140 today. CLX dividend was $2.4 (annual) a share ten years ago - and $4.62 today. (It also looks like CLX EPS is down . . . )

Which is why I like investing in companies that are 'Dividend Aristocrats' and 'Dividend Kings' - companies with a long history of increasing dividends. Because those 'income increases' (my income) give me a hedge against inflation.

Zim.

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