Your SlideShare is downloading. ×
Better Dividend Stock Today: McDonald's vs. Starbucks?
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Better Dividend Stock Today: McDonald's vs. Starbucks?

1,059
views

Published on

McDonald's and Starbucks both reward stockholders with reliable dividends. But which stock is a better pick for income investors today?

McDonald's and Starbucks both reward stockholders with reliable dividends. But which stock is a better pick for income investors today?


0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,059
On Slideshare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
3
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Better Dividend Stock: McDonald’s vs. Starbucks
  • 2. 3 Reasons to Love Dividend Stocks  Historically, dividend stocks have outperformed non-dividend stocks.  Reliable dividend stocks can offer you a steady income stream, despite market volatility.  Dividend stocks often have higher quality earnings.
  • 3. McDonald’s (NYSE: MCD) • McDonald’s pays an annual dividend of $3.24 per share. • The stock’s dividend yield of 3.19% is above the S&P 500, which yields 1.94%. Dividend Yield: 3.19%
  • 4. McDonald’s is a Dividend Aristocrat McDonald’s has increased its dividend every year since it first paid one in 1976.
  • 5. McDonald’s Payout Ratio • The fast food chain currently has a payout ratio of 56.9% • This means McDonald’s pays out more than 56% of its net income as dividends to shareholders. • Typically, anything below 80% is sustainable.
  • 6. Starbucks (Nasdaq: SBUX) • Starbucks pays an annual dividend of $1.04 per share. • Starbucks’ dividend yield of 1.40% is below that of the S&P 500. Dividend Yield: 1.40%
  • 7. Starbucks’ Dividend History Unlike McDonald’s, Starbucks has only paid a dividend for the past three years.
  • 8. How Sustainable is Starbucks’ Dividend? • Over the past three years Starbucks has grown its dividend more than McDonald’s during the same period. • However, during the past year Starbucks paid more in dividends than it earned. While this was partially due to increased costs, over time this is not sustainable.
  • 9. And the dividend champion is… If you’re investing for income, McDonald’s is the better pick because it offers an annual dividend above 3%, which is more than most high interest savings accounts today. While Starbucks is aggressively growing both its business and dividend, McDonald’s history of reliable payouts makes it a safer bet for investors.
  • 10. The Top Dividend Stocks For The Next Decade