Fast-food giants ready for China rebound

Article Excerpt

China recently announced several new measures to stimulate its economy. That’s good news for McDonald’s and Starbucks, which continue to expand their presence in that country. Investors will also benefit from their long-term commitment to lifting their dividends. MCDONALD’S CORP. $299 is a buy. The company (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 717.3 million; Market cap: $214.5 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest fast-food chain, with 42,406 restaurants in over 100 countries. It serves various foods but is best known for hamburgers and french fries. Franchisees now operate 95% of the company’s outlets. McDonald’s will raise your quarterly dividend with the December 2024 payment. Investors will receive $1.77 a share, up 6.0% from $1.67. The new annual rate of $7.08 yields 2.4%. The company has raised its annual dividend rate each year since 1976. McDonald’s plans to open 1,000 stores in 2024 in China, the same amount as in 2023. It wants to have…