This COVID star can handle Omicron

Article Excerpt

McDonald’s shares hit a record high of $267 in December 2021 as its restaurants re-opened in the past few months. Even if the Omicron variant leads to more lockdowns, the company’s popular drive-thru lanes and home delivery services should keep its earnings—and dividends—rising. MCDONALD’S CORP. $264 is a buy. This company (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 746.8 million; Market cap: $197.2 billion; Dividend yield: 2.1%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest fast-food chain with 39,676 restaurants in 119 countries. It serves a wide variety of food, but is best known for its hamburgers and french fries. Starting with the December 2021 payment, McDonald’s will raise your quarterly dividend by 7.0%. Investors will then receive $1.38 a share instead of $1.29. The new annual rate of $5.52 yields 2.1%. The company has now raised its annual dividend rate each year since 1976. McDonald’s has three main divisions: the U.S. (36% of revenue, 42% of earnings); International Operated…