This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Dividend Winners Better Than Treasuries

McDonald's

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

With shares down more than 12% this year, McDonald's (MCD - Get Report) isn't getting much love from investors right now -- but it should be. McDonald's is the standard bearer in the fast food business, with almost 34,000 locations in 119 countries. The firm has made some huge strides in improving its image, adding healthier choices and high-growth offerings like angus burgers and premium coffees to its menu. Those changes helped make McDonald's one of the few names that actually grew its business during the Great Recession.

>>3 Hot Stocks to Trade (or Not)

McDonald's has a pretty unique approach to opening new stores. While many investors don't realize it, McDonald's often owns the land underneath franchised store locations, generating bigger royalty streams from each location than rival quick service restaurant chains. That helps the firm generate substantial cash that it's historically passed onto shareholders in a big way. Currently, McDonald's pays out a Super Sized 3.53% yield.

At the end of the day, the amount of money that McDonald's stores generate acts as a positive feedback loop for MCD; with average annual sales of $2.7 million per location, franchisees will want to keep opening up McDonald's stores over other franchises simply because they're so much more lucrative to own. That abundance of locations, in turn, keeps McDonald's the dominant fast food franchise worldwide.

Despite this year's underperformance, McDonald's looks primed to keep besting the market in the long-term. The firm's latest dividend hike hits investors' accounts on Dec. 17.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CHD $82.12 0.00%
DLR $68.91 0.00%
CSX $32.68 0.00%
GIS $57.05 0.00%
MCD $96.17 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs