Be the first to like this
Weekly Dividend Stock Ideas Researched by The Dividend Yield Weekly. Our weekly Dividend Idea is the leading restaurant operator and franchises company McDonald's (NYSE:MCD). McDonald's owns and franchises its restaurants all over the world. By the end of 2011, the company had 33,510 restaurants in 119 countries, of which 27,075 were operated by franchisees and 6,435 were operated by the company. McDonald’s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages. More on Reuters here.
MCD operates a proven business model with a well diversifed global structure. The company is a strong established Dividend Champion and raised dividends over a period of 36 consecutive years with a double-digit long-term growth rate. Morningstar estimates the fair value of the company at $94.0, an upside potential of 7.64% compared to the previous close price of $87.33.
We like the strong brand and consumer focus of McDonald's. The huge cash flow of $7.1 billion allows the company to pay $2.6 billion dividends and to repurchase $3.0 billion own shares as of fiscal year 2011. Roughly $2.7 billion were used for CAPEX.