12-09-2013, 04:34 PM
MCD is a great long-term holding. If there is a place for it in your portfolio, and if you a planning on holding it for a long time, then I definitely would not worry about about a few dimes per share -- just pull the trigger with a market order.
As to whether this is a good price, I lean towards yes, but it is hard to say. As you point out, the current yield is better than it has been in quite a while, which can indicate an excellent entry point. But the share price has languished some lately, and may give you even better opportunities. My own guess -- nothing more -- is that MCD is going to trade sideways for another 6 months or year before breaking upwards into new territory again. If that guess proves right, you may see some better entry points.
Maybe buy a partial allocation now (say, half), and keep the other half dry while you keep an eye on the price?
As to whether this is a good price, I lean towards yes, but it is hard to say. As you point out, the current yield is better than it has been in quite a while, which can indicate an excellent entry point. But the share price has languished some lately, and may give you even better opportunities. My own guess -- nothing more -- is that MCD is going to trade sideways for another 6 months or year before breaking upwards into new territory again. If that guess proves right, you may see some better entry points.
Maybe buy a partial allocation now (say, half), and keep the other half dry while you keep an eye on the price?