Topic: How To Invest

Dividend Advisor Hotline – Friday, October 28, 2022

Article Excerpt

MCDONALD’S CORP., $274.52, New York symbol MCD, is a buy. The company is the world’s largest fast-food chain with 40,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries. Franchisees own roughly 95% of those outlets. McDonald’s has raised its annual dividend rate each year since 1976. The next increase will come in December 2022 when your quarterly payment increases 10.1%, to $1.52 a share from $1.38. The new annual rate of $6.08 yields 2.2%. Meantime, McDonald’s continues to see strong customer traffic despite raising its selling prices to cover higher costs for food, fuel and labour. However, its revenue in the quarter ended September 30, 2022, fell 5.3%, to $5.87 billion from $6.20 billion a year earlier. Even so, that topped the consensus forecast of $5.69 billion. If you adjust for currency rates, revenue improved 2%. Higher operating costs also cut McDonald’s earnings in the latest quarter by 4.6%, to $1.98 billion…