Monday’s stock-price shellacking (down 2%) of yet another Dependable Dividend – in this case McDonald’s (MCD) — comes on the heels of an earnings miss for the second quarter ended June 30, with EPS coming in at $1.38, below Zacks estimates of $1.41 yet still ahead by nearly 4% compared to one year ago. You can blame it on slow growth in Germany and France, along with Asia/Pacific, Middle East and Africa slowdowns, but know that MCD is continuously working to get people into their restaurants.
You can also count on dividend increases: 35 consecutive years and counting. As of this writing MCD hasn’t posted up its financials (instead providing a press release here) but should do so within a few days for analysis. My hunch is that MCD will show solid cash flow and a more than adequate cash stash on the balance sheet to not only keep you in dividends for the remainder of the year, but headed right toward year 36 of a dividend increase.