When it comes to investing, I lean towards buying companies with a proven track record, especially when their yields are historically high. A few years back, I purchased shares of the medical device firm Medtronic, which, admittedly, meant I got in a bit ahead of the ongoing upturn for the company. Recently, I’ve also invested more in McCormick, a specialist in flavors, after doubling my stake following their announcement about the potential benefits of acquiring Unilever‘s (UL +0.20%) food business. As October kicks off, I see both as promising long-term dividend investments.
Investing Early in Medtronic
My investment strategy centers on companies with consistent histories of raising dividends. Medtronic has now achieved 49 years of this, just a year shy of what would designate it as a Dividend King. A solid dividend history typically signals a well-managed company. I’m particularly drawn to firms with historically high yields, which often suggest that their stocks are undervalued. Currently, Medtronic’s yield is situated at the higher end of its historical range.
The situation with Medtronic is quite straightforward. After growing quite large and somewhat cumbersome, they’ve undergone necessary changes. I bought in while those changes were still underway. Interestingly, Wall Street hasn’t fully acknowledged the company’s turnaround, which represents a potential opportunity for dividend investors. Notably, Medtronic experienced its fastest revenue growth in a decade for fiscal 2026, boasting nearly 14% revenue growth in the first quarter of fiscal 2027.
This dependable dividend stock appears to have made a significant turnaround, making its above-market yield of 3.3% a timely buy this October.
McCormick’s Expansion Ahead
I recently doubled my investment in McCormick, a company that produces spices and flavorings for both consumers and businesses. They’ve boosted their dividend annually for 39 years, and their yield now exceeds 4%, nearly reaching its highest point recently.
There are, of course, some concerns in the market. For one, food companies, in general, are currently facing challenges due to changing consumer buying behaviors and high inflation—which is tightening budgets. Still, I believe that flavors are a resilient segment, and I expect McCormick will perform well over the long term. In fact, their organic sales growth for the second quarter of 2026 increased to 1.9%, up from 1.7% in the first quarter. So, this isn’t a company that’s falling apart.
The other potential issue relates to McCormick’s plan to acquire Unilever’s food sector, which would essentially double its sales. This acquisition is significant, and McCormick has recently highlighted various advantages that come with increased scale. Clear opportunities for cost reduction and notable cross-selling prospects are on the horizon, particularly as their emerging-market exposure is set to rise from 25% to over 40% of sales.
I’ll admit, I might once again be buying in a bit early, since the acquisition isn’t finalized yet. But regardless of what happens there, McCormick is a well-managed consumer staples company with a historically attractive yield and a strong record of dividend payments. I believe that investing when most are cautious about food stocks, particularly McCormick, could eventually pay off for dividend-focused investors in the long run.
Both Stocks are Solid Options
I’m fully committed to both Medtronic and McCormick. If you’re in search of reliable, high-yield dividend stocks, I suggest you consider them as we enter October. Medtronic, which seems to be past its business restructuring phase, is likely the safer option. However, if you’re open to some uncertainty regarding acquisitions, McCormick presents a more enticing yield.
