- PE Ratio: 18
- Dividend Yield: 3.2%
- Payout Ratio: 55%
One of the most tried and true dividend payers is restaurant chain McDonald’s (MCD), whose 37-year string of consecutive dividend increases is not going to end during your investment lifetime.
It’s an interesting time for MCD, as same-store sales have weakened over the past year, and international sales have stalled a bit. But as Dividend Growth Investor points out, earnings per share continue to rise. And that dividend, now sitting at 77 cents per share quarterly, will continue to grow along with those earnings.
McDonald’s has the ability to reinvent itself over and over, changing menus to reflect new consumer tastes and trends. The company now features salads and healthier foods, offers it’s “Dollar Value” menus to entice value-focused customers, added breakfast menus to its offering, and is even rolling out chicken wings — “Mighty Wings” — to compete across the entire segment.
Bottom line? McDonald’s is an institution, they never seem to run out of ideas and strategies to adapt, and your RMD money couldn’t be in a safer place.