How to Buy McDonald's Stock and Earn Dividends
Ready to learn how to buy McDonald's stock and benefit from the dividend? We will teach you how to do it in this article.
MarketBeat.com - MarketBeatMcDonald's is not only a blue chip quality stock, but also the leader in its field and payer of reliable dividends. The company has increased its dividend payouts for more than four decades and may continue this trend for several decades to come.
The bottom line is that buy-and-hold investors, income investors, and retirement savers may want to take a serious look at McDonald's stock for many reasons.
About McDonald'sMcDonald's was founded in 1940 by Richard and Maurice McDonald. The two brothers quickly grew their business into a chain of franchises that used the "speedee" system and revolutionized modern fast food operations.
Ray Kroc joined the group in 1955 as a franchise agent and proceeded to buy the business from the brothers. Under his leadership, the company franchised and expanded into new territories with an emphasis on ownership of the underlying properties upon which each restaurant was built.
Today, McDonald's is the largest restaurant chain in the world in terms of revenue and volume. The company serves more than 69 million people daily and is present in more than 100 countries, including more than 46,000 stores. Annual revenue exceeded $23 billion in 2022.
Dividend statistics and outlookMcDonald's is not a dividend king but it is a dividend aristocrat with over 40 years of consecutive annual increases in its history.
What to know about Dividend King stocks? They've been increasing their dividends for at least 50 years, and MCD is on track for that distinction as well. McDonald's dividend per share operates with a payout ratio of around 50%, which is very manageable, as is its compound annual growth rate (CAGR) of 8%.
CAGR is important to how dividend stocks work and a measure that can change over time. The company has quite a bit of debt, much of it used to buy back stock, but it's well managed and doesn't affect the company's ability to pay dividends.
McDonald's stock splitA stock split refers to an issue of new shares of a company to existing shareholders, in proportion to their current holdings.
McDonald's stock has been split nine times since the early 1970s. The splits break down into two categories, 3-for-2 splits and 2-for-2 splits, of which there were five of the former and four of the latter . No further splits are planned at this time, but with stock prices at all-time highs, it could happen again.
McDonald's Analyst RatingsMcDonald's is followed by solid analysts and generally offers at least twenty current ratings. At the end of 2022, the stock was pegged at a "moderate buy". The price target tends to rise over time and pushes the stock up with it.
Institutional ownership of McDonald'sMcDonald's, despite its small internal stake of 0.2%, is a tightly held stock. Institutions own around 70% and are, in general, net buyers of the stock, although there are times when the balance shifts.
The remaining 30% is held by the public in the form of stocks, ETFs and other funds, of which there are many. Not only is the stock a member of the S&P 500, the world's most-watched and most-imitated index, but the company is also a dividend aristocrat. That means it's on the Dividend Aristocrat Index and included in a few hundred additional index funds that broaden ownership and help support stock prices.
McDonald's ContestMcDonald's has competition, but don't waste time worrying about it. Other burger joints and fast food restaurants exist nearby at virtually every McDonald's on the planet, but none have the scale, reach, recognition, or loyalty to the McDonald's brand.
Wendy's, its closest competitor, has outstripped former Burger King No. 2 during the pandemic thanks to its international expansion, but its size is only 25% the size of McDonald's. Player #4, Sonic, is half the size of Wendy's, so you can easily see the difference in scale.
It's possible that one of the smaller chains will come up with a winning combination, tactic or product, but you can be sure that McDonald's will follow to maintain its #1 position and stay in the rankings as #1 dividend choice.
Ready to learn how to buy McDonald's stock and benefit from the dividend? We will teach you how to do it in this article.
MarketBeat.com - MarketBeatMcDonald's is not only a blue chip quality stock, but also the leader in its field and payer of reliable dividends. The company has increased its dividend payouts for more than four decades and may continue this trend for several decades to come.
The bottom line is that buy-and-hold investors, income investors, and retirement savers may want to take a serious look at McDonald's stock for many reasons.
About McDonald'sMcDonald's was founded in 1940 by Richard and Maurice McDonald. The two brothers quickly grew their business into a chain of franchises that used the "speedee" system and revolutionized modern fast food operations.
Ray Kroc joined the group in 1955 as a franchise agent and proceeded to buy the business from the brothers. Under his leadership, the company franchised and expanded into new territories with an emphasis on ownership of the underlying properties upon which each restaurant was built.
Today, McDonald's is the largest restaurant chain in the world in terms of revenue and volume. The company serves more than 69 million people daily and is present in more than 100 countries, including more than 46,000 stores. Annual revenue exceeded $23 billion in 2022.
Dividend statistics and outlookMcDonald's is not a dividend king but it is a dividend aristocrat with over 40 years of consecutive annual increases in its history.
What to know about Dividend King stocks? They've been increasing their dividends for at least 50 years, and MCD is on track for that distinction as well. McDonald's dividend per share operates with a payout ratio of around 50%, which is very manageable, as is its compound annual growth rate (CAGR) of 8%.
CAGR is important to how dividend stocks work and a measure that can change over time. The company has quite a bit of debt, much of it used to buy back stock, but it's well managed and doesn't affect the company's ability to pay dividends.
McDonald's stock splitA stock split refers to an issue of new shares of a company to existing shareholders, in proportion to their current holdings.
McDonald's stock has been split nine times since the early 1970s. The splits break down into two categories, 3-for-2 splits and 2-for-2 splits, of which there were five of the former and four of the latter . No further splits are planned at this time, but with stock prices at all-time highs, it could happen again.
McDonald's Analyst RatingsMcDonald's is followed by solid analysts and generally offers at least twenty current ratings. At the end of 2022, the stock was pegged at a "moderate buy". The price target tends to rise over time and pushes the stock up with it.
Institutional ownership of McDonald'sMcDonald's, despite its small internal stake of 0.2%, is a tightly held stock. Institutions own around 70% and are, in general, net buyers of the stock, although there are times when the balance shifts.
The remaining 30% is held by the public in the form of stocks, ETFs and other funds, of which there are many. Not only is the stock a member of the S&P 500, the world's most-watched and most-imitated index, but the company is also a dividend aristocrat. That means it's on the Dividend Aristocrat Index and included in a few hundred additional index funds that broaden ownership and help support stock prices.
McDonald's ContestMcDonald's has competition, but don't waste time worrying about it. Other burger joints and fast food restaurants exist nearby at virtually every McDonald's on the planet, but none have the scale, reach, recognition, or loyalty to the McDonald's brand.
Wendy's, its closest competitor, has outstripped former Burger King No. 2 during the pandemic thanks to its international expansion, but its size is only 25% the size of McDonald's. Player #4, Sonic, is half the size of Wendy's, so you can easily see the difference in scale.
It's possible that one of the smaller chains will come up with a winning combination, tactic or product, but you can be sure that McDonald's will follow to maintain its #1 position and stay in the rankings as #1 dividend choice.
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