McDonald’s (MCD) has been under pressure in 2013 thanks to both soft consumer spending at home and trouble abroad, particularly in Europe where consumers have been battered and in China where the company has banked on growth that isn’t as brisk as hoped. In July, MCD missed earnings thanks to these global troubles.
But underperformance notwithstanding, McDonald’s has a lot to offer investors right now — including a nice 3.2% dividend and a strong history of increases. Consider that in 2003, it paid just 40 cents annually in dividends, but in 2013 is on track to pay $3.08 — an increase of more than eightfold.
The company is rethinking its dollar menu and looking to change the recent history of earnings trouble, so investors might want to consider a bargain buy in MCD.