Dividend.com: Morgan Stanley Shreds Div

The Oak Brook, Ill.-based company reported fiscal first-quarter net income of $979.5 million, or 87 cents per share, from $946.1 million, or 81 cents per share, in the year-ago period. Excluding a 4-cent per-share gain from a sale of its interest in a specialized business unit, McDonald's saw an adjusted profit of 83 cents per share.

This profit was enough to beat the average Wall Street analyst estimate of 82 cents per share, however, total revenue fell to $5.08 billion from $5.61 billion in the year-ago period.

Same-store sales, considered a key indicator of a retailer's health, rose steadily in the period. Sales at restaurants open at least 13 months rose 4.3% globally, with the U.S. seeing a 4.7% increase, while the Asia/Pacific, Middle East and Africa, regions rose 5.5%, and Europe rose 3.2%.

The company said that April same-store sales are trending at least as well, or possibly better than, the latest quarterly results. McDonald's shares rose 64 cents, or +1.24%, in morning trading Wednesday.

We have been recommending shares of MCD since June 9, when the stock was trading at $56.95. The company has a dividend yield of 3.60%, based on last night's closing stock price of $55.63.

The company has been a steady performer throughout the swoon the market has experienced. We like how the shares have performed so far on our "Recommended" list and would still hold the shares here, but we are watching the name closely if the results begin to deteriorate.

McDonald's Corporation is a "recommended" dividend stock, holding a Dividend.com DARS Rating of 3.6 out of 5 stars.

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