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sagitarius84 (54.78)

Three Quality Companies Raising Dividends And Returns



September 26, 2017 – Comments (1) | RELATED TICKERS: MCD , MSFT , WPC

As part of my monitoring process, I review the list of dividend increases every week. This helps me keep a pulse of dividend growth stocks I own, as well as the ones I may be interested in at the right valuation.  The companies that raised dividends over the past week in review include Microsoft (MSFT), McDonald's (MCD) and W.P. Carey (WPC).

In general, we want dividend growth stocks which have raised distributions for at least a decade, which was possible due to growth in earnings per share, and we want those at an attractive valuation. The quick review of each dividend raiser is focused on these general points of interest.

McDonald’s Corporation (MCD) operates and franchises McDonald’s restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, Latin America, and internationally.

The company hiked its quarterly dividend by 7.40% to $1.01/share. This marked the 42nd consecutive annual dividend increase for this dividend champion. As a McDonald's shareholder, I am lovin' it! I celebrated the dividend increase with the two cheeseburger number two meal at my local establishment. McDonald’s has managed to boost dividends at a rate of 13.70%/year over the past decade. This was supported by an increase in earnings from $1.93/share in 2007 to $5.44/share in 2016. The company is expected to earn $6.52/share in 2017. Currently, the stock is overvalued at 24.40 times forward earnings and yields 2.50%. McDonald's would be a better value on dips below $130/share, and an even better one on dips below $109/share. I came up with these values by multiplying the forward earnings for 2018 by 20 and the earnings for 2016 by 20.

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1 Comments – Post Your Own

#1) On September 26, 2017 at 9:57 AM, sagitarius84 (54.78) wrote:

What is your opinion on the three companies listed below?

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