McCormick Is Overpriced

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About: McCormick & Company, Incorporated (MKC)
by: Patrick Doyle
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Patrick Doyle
Long/short equity, long only, Growth, momentum
Summary

McCormick & Co. is a great business because it's largely recession resistant in my view. That greatness is borne out in the numbers.

The problem is that we investors are cursed to access company cash flows via stocks, and stocks are often very poor proxies for the health of the underlying.

Selling put options presents investors with a "win-win" trade. "Worst" case scenario, investors buy at a price that has a great chance of producing a great long term return.

Over the past year, the shares of McCormick & Co. Inc. (MKC) are up about 20%, and I thought I’d check in on this dividend superstar to see if now’s a good time