McDonalds, when populations increase they eat more McDonalds - Dividend Machine for the week of October 22, 2012.
McDonalds, symbol MCD,
has been on my radar many times in past decades. However, once I started using my very
specific dividend machine criteria, MCD did not show up as the first dividend machine I found with my screen until this
week. Like MSFT, McDonald’s price was
too high or the dividend too low to qualify as a bona fide dividend
machine. Recently, McDonald’s qualified
on every other dividend criteria except yield and now we have the dividend
yield greater than 3%.
INCOME is the point of
my dividend machine strategy and I require a minimal amount of income from
every dollar I invest. I have to beat
the 10 year treasury (not too hard these days) and I have to beat inflation. Currently a three percent yield is the minimum I expect.
INCREASING INCOME is
very important to retired people because we really do not want to have to go
back to work. My income has to increase
every year because my basic expenses increase every year. Some years, expenses increase less than other
years and vice versa; but over time you must create a portfolio of securities
that is highly likely to steadily increase.
If it makes you feel
better about MCD as a dividend machine you can assure yourself that population
growth and fast food intake tend to grow together.
This dividend project does not feel better about a security because the company is in the right sector or because it is the current hot idea; we use
only the company’s history of sharing income with us, their ability to earn more
than they pay us and their management of debt to guide us.
With that in mind,
please review the fundamental data on McDonalds Corp, MCD as you consider how
to create your income portfolio.
DIVIDEND MACHINE
|
10/24/2012
|
McDonalds Corp.
|
MCD
|
Price when profiled
|
$87.28
|
Last 4 Qtrs Earnings
|
$5.32
|
Last 4 Qtrs Dividends
|
$1.14
|
Current Qtr Dividend
|
$0.77
|
Annualized Div Yield
|
3.53%
|
No. Years Div Increase
|
35
|
Debt/Equity ratio
|
.97%
|
Very Truly Yours,
TheMoneyMadam
