Current Dividend Yield: 3.45%
Performance So Far in 2012: -11%
How did McDonald’s (NYSE:MCD) go from on the Dow Dividend bubble to solidly up the list in just a few months?
Well, a 10% increase in its dividend in the most recent quarter certainly helped.
… Unfortunately, so did a really, really crappy year for MCD stock.
After celebrating a Dow-leading year in 2011, McDonald’s stock has been knocked to the floor with double-digit losses amid a broader bull market run. The company has been dogged by missed expectations on the same-stores front, including a 1.8% decline for October – MCD’s first contraction in that metric for the first time since 2003. That — coupled with a crappy third-quarter earnings report — really greased the rails for a ugly slide.
Still, things aren’t all bad for the Golden Arches.
McDonald’s same-store sales rebounded handily in November, with 2.4% improvement easily topping analysts’ lowball expectations, and the company remains the biggest name in international fast food, as well as one of the best-managed.
Plus, income investors getting in now can enjoy a meaty 3.45% yield that’s sure to go up, as MCD has dutifully bolstered payouts every year since 1976.