Buying High-Yield Dividend Stocks Medtronic and McCormick for Long-Term Gain

Investing in High Yield Dividend Stocks: Medtronic and McCormick

Investing in proven businesses when they offer historically high yields can be a rewarding strategy. I did exactly this a few years ago when I purchased shares in the medical device giant Medtronic (MDT), a bit ahead of its current business upturn. More recently, I’m doubling my stake in flavor specialist McCormick (MKC) as it detailed potential benefits from its planned acquisition of Unilever’s (UL) food business. I believe both are solid long-term dividend buys as we enter October.

The Value of Early Investing in Medtronic

When investing, I focus on companies with long histories of dividend increases. Medtronic just celebrated its 49th consecutive year of dividend growth, just one year shy of achieving the prestigious Dividend King status. A strong dividend history is a quick way to recognise well-run businesses. Furthermore, I pay attention to companies with historically high yields, which often indicates undervalued stocks. Medtronic’s yield is currently towards the high end of its historical range, making it an attractive investment.


Medtronic’s growth story is quite straightforward. It underwent a business overhaul due to some bloating issues, which is now nearly complete. Despite its success, Wall Street hasn’t fully acknowledged its turnaround, creating a potential opportunity for long-term dividend investors. Notably, the company’s revenues grew the fastest in a decade in fiscal 2026, with a nearly 14% increase in the first quarter of fiscal 2027. This reliable dividend stock appears to have turned the corner, making its above-market 3.3% yield a timely buy this October.

McCormick: A Rapidly Growing Business Prospect

I recently doubled my position in consumer staples company McCormick, which sells spices and flavorings to both consumers and businesses. With 39 years of consecutive annual dividend increases and a yield over 4%—near its highest level in recent history—McCormick makes for an attractive investment.

There are, however, two market concerns for McCormick. Firstly, food companies are currently facing challenges due to changes in consumer buying habits and high inflation that prompts consumer frugality. However, flavors remain a resilient category, and I expect McCormick to thrive over the long term. Its second-quarter 2026 organic sales growth was a solid 1.9%, up from 1.7% in the first quarter, suggesting that the business is holding strong.

The second concern arises from McCormick’s plan to acquire Unilever’s food business, which could potentially double its sales. This is a significant move, but McCormick recently outlined some of the benefits that increased scale could bring, including cost-cutting opportunities and significant cross-selling potential.

Investing in Either Medtronic or McCormick Can Be a Strong Choice

I fully believe in the potential of both Medtronic and McCormick. If you’re seeking reliable high-yield dividend stocks, I recommend considering both as we enter October. Medtronic, having successfully overhauled its business, seems like the safer choice. However, if you’re willing to weather some acquisition uncertainty, McCormick offers a more attractive yield.