02-09-2016, 01:22 PM
(02-09-2016, 11:04 AM)EricL Wrote: I don't have time for an extensive comment right now, but when you overpay for stocks you are also undercutting your yield since dividend yield is a function of price. If you overpay by 20% on a company, you are permanently dropping your future income by 20% as well.
Agree with EricL. If MCD is overvalued at the time, find something else that is undervalued and watch MCD. Usually, you'll get your price if you are patient enough. For me, valuation trumps yield.