McCormick's $44.8B Unilever merger strengthens its dividend safety despite higher debt.

McCormick announced a $44.8 billion merger with Unilever's food business, adding to its recent 75% stake acquisition in McCormick de Mexico. Despite increased debt and leverage, management commits to maintaining dividends, targeting a payout ratio around 60%. The company has a strong dividend history with 40 consecutive years of increases and healthy payout ratios, supported by stable free cash flow and earnings coverage. The merger aims for $600 million in synergies and is expected to be accretive in the first year, keeping McCormick's dividend safe if leverage targets and synergy goals are met.