Consumer giants keep rewarding investors

Article Excerpt

These U.S. consumer giants have raised their annual dividends for decades now. Even so, we feel McDonald’s “asset light” model makes it the better pick for new buying. MCDONALD’S CORP. $257 is a buy. This company (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 735.7 million; Market cap: $189.1 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest fast-food chain with 39,696 restaurants in 118 countries. It serves a wide variety of food but is best known for its hamburgers and french fries. McDonald’s has raised its annual dividend rate each year since 1976. The next increase will come in December 2022 when your quarterly payment increases 10.1%, to $1.52 a share from $1.38. The new annual rate of $6.08 yields 2.4%. Franchisees now operate 93% of the company’s outlets. Still, under this “asset light” business model, the company is responsible for buying the land and then building the restaurant. It also supplies the food and pays for advertising…