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Bear market? What bear market?
MCD is up from $167 to $270 in the past 5 years, in a pretty straight line up as far as stocks go. You want annual dividend increases? Let's see...
2018 - $1.01
2019 - $1.16
2020 - $1.25
2021 - $1.29
2022 - $1.38
2023 - $1.52
The P/E is high (~38), but other than that, seems like a model citizen of DGI land.
It is a great stock. I'm already sitting on 100 shares of it. The high PE is why I haven't added to it in a while.
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I definitely do; I'm kind of embarassed I never took a closer look before. Will load up some day.
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04-01-2023, 03:34 PM
(This post was last modified: 04-01-2023, 03:36 PM by Kerim.)
I bought most of my MCD in the 2011-2014 period, when you could get yields in the 3.5 percent neighborhood. It is a bit hard to get excited about new shares at the current valuation, but the company looks nice and healthy to me. I don't think I've ever considered selling it.
(I do sometimes imagine evolving into the type of investor who sells holdings that become really over-valued, but I haven't yet. And even if I did, I'd still likely keep holding my MCD at these levels.)
((And yes, I do occasionally do still swing through the drive-through when I'm in the mood for a treat!..... Uh, I mean,,, just to keep tabs on my investment.))
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07-25-2023, 03:47 AM
(This post was last modified: 07-25-2023, 04:21 AM by Forticus.)
MCD is kind of a nostalgia stock to me.
It is one of the two remaining stocks from 2015 when I turned to DGI [1]. Few days after I bought it, I took son (16) and wife to "our" restaurant to hold the annual shareholder meeting of our new DGI Fund. To my memory, MCD and its dividend raises end of 2015, 2016 and 2017 convinced me of the picture of "bonds with increasing coupons". It kind of learned me DGI.
Today, the yield on cost of the 2015 position would be 6.4%. "Would", because in 2019 I had to sell MCD and rebuy it to transfere it to an account under my wife's name. Thus its official YoC is just 3.4%.
I added to MCD end of 2017. Probably the lower entry yields and Fastgraphs' chart kept me from buying more.
Thanks for bringing MCD back to attention. I marked it for a possible add when it touches the light green area (Fastgraphs) or gets 3 stars (Morningstar).
- - -
[1] the other is IBM.
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I love your "annual shareholder meeting" with the family at the restaurant. My daughter is almost 18 but steadfastly refuses to concern herself with anything money-related. I hope your son was attentive.
JNJ was my introduction to DGI.
Btw, I'm up to 5 shares of MCD. I will keep slowly building the position.
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Yes it is. Under the criteria that I used, MCD was the 3rd best performing Dividend Aristocrat. Best was CHD, then LIN, then MCD which slightly edged out SHW. Those were clearly the best. A notch below was O. Then a large group that all did similarly well.
