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 to buy or not. In case the reader is particularly impatient today, I’ll come right to the point. The business has some challenges, but these aren’t enough to drive me away from the shares. In my view, the market knows about the fact that this business is largely resistant to the vagaries of the business cycle, obviously, because the shares are trading at a very rich valuation. For that reason, I can’t recommend simply buying the shares. That said, markets can remain overpriced for years at a time, and for that reason I think selling put options makes the most sense here. There are two potential futures for people who write put options. If the shares remain elevated (or flatline from these levels), they pocket premia. If the shares drop in price, they may be obliged to buy this great company at a very reasonable price. Either outcome is a “win” in my estimation, and for that reason, I’m advocating a short put strategy here.

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