Macdonalds have been a favorite dividend stock of many investors because of its strong business model, reasonable prevailing yield and its dividend sustainability.
- MCD is a member of the S&P 500 Dividend Aristocrat
- MCD since 1976 have increase its dividends for 34 years
- No negative free cashflow
- Dividend payout is less than 60% of earnings
- Dividend growth is increasing
- Current Dividend yield at this juncture is 3.29%. International dividend investors should take note that factor in 30% withholding dividend is 2.3%
Interested investors should wait for a change in price movement to add on exposure. But of concern is the high volume sell down. Good readers could update me if there are any big negative news.
I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
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Bo Christiansen
Friday 7th of December 2012
MCD as well as other stock in the USA which have had good capital gain in the last three to five years are being sold down due to the new tax rules from next year. As of next year all your capital gain on a stock will be taxed at a higher rate. Thus, investors who have had good capital gain are realizing their gain this year rather than next year. As they will pay much less tax this year.
Drizzt
Sunday 9th of December 2012
hi Bo,
yes a lot of investment gurus seem to think that is the reason for the sell down. in my opinion, if you are to do this for some time you got to find a way to circumvent this problem. but this tax move is starting to make US stocks look less attractive dividend wise.
koldo
Friday 7th of January 2011
My Opinion:
Great oportunity under 70 usd
Koldo. [email protected] twitter.com/Moatcapital
KK
Friday 7th of January 2011
For the SGX dividend stock, have you study other small/medium cap company like Etika,UOB Kay hian that is able to offer yield 4~5%?
Do you have any comment on this?
US market do offer a lot of high dividend counter like CIM ($0.17/quarter) AGNC($1.40/quarterly) which can get 10% after deducting the 30% witholding tax. Any comment for both counters?
Drizzt
Saturday 8th of January 2011
Hi KK interesting counters. ETIKa i think i did highlighted it before >> https://investmentmoats.com/money-management/dividend-investing/do-dividend-plays-payof-course-they-do-etikaaztechthai-bev/
but not really appealing to me. Kayhian is a spot from my brother but didnt make a move.
i shall look into your US counter