Dividend increase: McDonald’s

Article Excerpt

MCDONALD’S CORP. $166 (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 775.8 million; Market cap: $128.8 billion; Dividend yield: 2.8%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest operator of fast-food restaurants, with 37,000 outlets in 120 countries. The company has increased its dividend each year since 1976. Starting with the December 2018 payment, McDonald’s will increase its quarterly dividend by 14.9%, to $1.16 a share from $1.01. The new annual rate of $4.64 yields 2.8%. The stock trades at 21.8 times the company’s projected 2018 earnings of $7.63 a share. That’s a reasonable multiple in light of McDonald’s growth prospects and well-known brands. McDonald’s is a buy. buy…