09-18-2013, 11:09 PM
I was looking for an 8% raise so I'm a little disappointed but I might have set my hopes too high. I know they have struggled this year so maybe 5% is not totally unexpected.
Still MCD is an excellent company but 3.3% yield and 5% DG is borderline mediocre and I doubt I'll be adding any new shares unless it gets cheap. At $92.50 it would yield 3.5% and at $81 yield 4%.
OTOH you have to think a great company like MCD could pick the DGR back up if things get better. From 2000 to 2002 the dividend went from $0.215 to $0.235 but was $2.05 just 7 years later. Payout ratio is around 55% so maybe good times again if things pick up steam overseas. For now though I have it marked down as 5% DGR because that's the last thing it did.
Still MCD is an excellent company but 3.3% yield and 5% DG is borderline mediocre and I doubt I'll be adding any new shares unless it gets cheap. At $92.50 it would yield 3.5% and at $81 yield 4%.
OTOH you have to think a great company like MCD could pick the DGR back up if things get better. From 2000 to 2002 the dividend went from $0.215 to $0.235 but was $2.05 just 7 years later. Payout ratio is around 55% so maybe good times again if things pick up steam overseas. For now though I have it marked down as 5% DGR because that's the last thing it did.