Who doesn’t love the Golden Arches of McDonald’s (NYSE:MCD)? More important, who doesn’t recognize those Golden Arches? From New York to California to Bejiing and now to New Delhi, everyone knows them, and the wise folks at MCD make every effort to cater to new customers the world around.
Competition? I don’t know — does Wendy’s (NASDAQ:WEN) count? McDonald’s has paid a dividend since 1976, with 35 consecutive years of increases. Today’s dividend of $2.80 cents per share annually provides a juicy 3% yield.
With nearly $2.5 billion in cash and nearly $1 billion in free cash flow, things are still cooking at McDonald’s. Its payout ratio is just over 50%, and that might scare off some investors, but not this one. MCD will be around flipping burgers and whatever appeals to the GLOBAL mass consumer for a very long time, and rewarding investors is just a part of the recipe.