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thewh00sel  United States. Oct 10 2012 12:45. Posts 2734 | | |
This stock wasn't listed on my "watchlist" at the end of my last post, but it should have been. I recently made an investment in McDonald's (MCD) at $91.25 per share. McDonlad's is an international food service company that is a very dominant force in the industry. There are over 25,000 McDonald's in 39 countries. (source-http://www.nationmaster.com/graph/foo_mcd_res-food-mcdonalds-restaurants)
Although MCD isn't exactly "cheap" at the current price, it does fit my entry criteria, and is as safe of a choice as I can make for a dividend growth stock, with good yield and solid fundamentals. MCD has raised dividends for the past 35 years and currently yields $3.08 per share, giving me a yield on cost of 3.38%. The dividend growth rate for the past 5 years is 34.87% which is faster than the growth in earnings per share. This is due in part because of the high saturation, and thus, limited growth of McDonald's properties over the past 5 years. The company's dividend payout ratio is 53%. A lower payout ratio is always better as it shows that the company can sustain consistent dividend increases in the future. McDonald's is currently valued at 17x earnings which fits my entry criteria of a P/E ratio less than 20.
Disclosure: Long MCD
I am not a professional investment adviser, and my opinions are not recommendations to purchase.
Image via FamousLogos.org
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| A government is the most dangerous threat to man’s rights: it holds a legal monopoly on the use of physical force against legally disarmed victims. - Ayn Rand | |
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Have you already invested in google? If not whats your opinion on them. |
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thewh00sel United States. Oct 10 2012 14:51. Posts 2734 | | |
| | On October 10 2012 13:04 def_jammer wrote:
Have you already invested in google? If not whats your opinion on them. |
I don't really follow google since they don't offer a dividend and my primary strategy is based on acquiring stock in companies that focus on offering sustainable dividend increases that reward shareholders for owning a piece of the company. |
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| A government is the most dangerous threat to man’s rights: it holds a legal monopoly on the use of physical force against legally disarmed victims. - Ayn Rand | |
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TheHuHu3 United States. Oct 10 2012 16:14. Posts 5544 | | |
How many shares did you buy? I need to know because for science. |
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Spicy United States. Oct 10 2012 16:33. Posts 1027 | | |
I like your entry on MCD in the lower 90s very sexy
| | On October 10 2012 13:04 def_jammer wrote:
Have you already invested in google? If not whats your opinion on them. |
Momentum tech stocks like GOOG are currently heavily dominated by short term hedge funds and traders. As an investor, you would have liked an entry point from beginning of 2011 to summer 2012 in $500 - $600 range. In August, it started pushing for multi-year highs and all the longer term investors are now selling to take profits / scaling down their positions. Now it's just short term technical traders playing a guessing game of how long the momentum will continue. Really tough to get involved as an investor at this time as it's acting more like a "trading vehicle" |
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PuertoRican United States. Oct 10 2012 22:11. Posts 13051 | | |
If I ever buy stock, it will be in "BevMo", formerly Beverages and More.
It's not public yet, so no stock available. (I think that's how it works.)
BevMo = largest chain of stores that specialize in alcohol, it's like a super market but with wine/beer/hard liquor/snacks/etc.
There's a competitor to BevMo, I don't remember the name though, but I'd invest in either of the companies if the stocks were available. |
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dogmeat Czech Republic. Oct 11 2012 00:01. Posts 6374 | | |
everyone eating at mcd should die
just my 2c  |
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tooker . Oct 11 2012 03:17. Posts 470 | | |
| | On October 10 2012 23:01 dogmeat wrote:
everyone eating at mcd will die
just my 2c |
fyp |
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Looks expensive but cheap crap food is probably a decent way to go when people have less money. |
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PuertoRican United States. Oct 11 2012 14:50. Posts 13051 | | |
| | On October 11 2012 05:10 DustySwedeDude wrote:
Looks expensive but cheap crap food is probably a decent way to go when people have less money. |
That's the way McDonald's markets themselves, so that's why you see a bunch of broke people eating their food, and eventually getting fat.
Also, you can eat non-crappy food when you're broke, you just have to not be lazy and learn to cook at home, eat leftovers, and bring your own lunch/dinner to school/work instead of buying soda/fast food. |
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Yea but not enough people do that. Cheap crap food that's fairly addictive can't be a bad investment when times get hard. |
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Uptown . Oct 17 2012 00:03. Posts 3557 | | |
I like it, esp sine McDonalds is kinda recession proof. Good hedge imo. |
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