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Don’t Dump These Downtrodden Dividend Darlings

An earnings miss isn't the end of the world

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McDonald's NYSE:MCDMonday’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.

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