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Woo hoo, got a raise today!

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September 23, 2010 – Comments (7) | RELATED TICKERS: MCD

TMF is running a "10 Core Stocks for Your Portfolio" series which started last week and wraps up on Friday.  I was fortunate enough to be one of the writers selected to contribute a pick and chose MCD.  The track record of raising the dividend every year along with a reasonable payout ratio and earnings growth to support continuing the raises are key reasons for making MCD my choice for a core stock.

I didn't get the raise at work, but McDonald's tacked 11% to its dividend payout today.  With the raise, the stock yield has bumped up to 3-1/4%.  Mickey D's has been giving shareholders a raise every year since it first started paying a dividend in 1976.
Bravo Zulu to TMF's editor for getting the div hike rolled in to the article; it was submitted before the announcement.

What characteristics do you look for in a core holding and what's your best idea for a core stock holding?

Disclosure:  Long MCD.

7 Comments – Post Your Own

#1) On September 23, 2010 at 10:35 PM, HarryCarysGhost (99.70) wrote:

Wow, if I remember correctly MCD raised the div last qtr by %10. So to raise it again is quite impressive.

For my core holdings I would have to go with BUD, CBOE, and V.

I expect  div increases on all three and I think the share price should go higher.

Disclosure: Long all three.

 

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#2) On September 23, 2010 at 11:13 PM, rd80 (98.30) wrote:

It was last year that MCD raised the div by 10%, not sure if that was a typo.

I owned the old BUD, but haven't followed it closely since the buyout a couple years ago.  Maybe I should take a look. 

Thanks for the comment.

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#3) On September 23, 2010 at 11:39 PM, Momentum21 (94.21) wrote:

My idea of a core holding is evolving with this market. The amount of cheap capital some business have access to these days is absolutely sick. I enjoy seeking out volatile "value plays" and have done OK but there is really no reason for money to be laying around in my money market.

This cheap money is also going to create higher barriers to entry down the road for small players so I am starting to think more about that when it comes to my strategy.  

I just ran the long term charts on MCD and it made me want to punch a wall. Not sure why I don't use it as a "money market."

Nothing is certain but these guys are pretty good.  

How about "T", "AZN" and "MSFT"? Those are my holdings that I would recommend to family & friends and don't worry about...some are my larger holdings are not "core" : )

You want a little more risk and upside to your core (with a solid divvy) take a look at STD. 

Might add MCD tomorrow! 

 

 

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#4) On September 23, 2010 at 11:44 PM, Momentum21 (94.21) wrote:

How about "T", "AZN" and "MSFT"? Forget I even said that...stick to MCD... : ) 

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#5) On September 24, 2010 at 1:14 AM, HarryCarysGhost (99.70) wrote:

Sorry, looks like MCD has waited a year but that's still impressive.

For sure, take a look at BUD. An underfollowed stock which has been eliminating debt due to merge.

They should be paying a hefty div within the next year, as the company continues to rake in profits.

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#6) On September 24, 2010 at 8:24 AM, TMFJake (71.01) wrote:

Congrats!

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#7) On September 24, 2010 at 5:14 PM, EnigmaDude (92.95) wrote:

I just decided to add a core position in GE.  Their stock has been punished the past 2 years or so but they continue to pay out a decent dividend (~3%) and they are not likely to go bankrupt or slash their dividend any time soon.  The stock is trading at a very low relative value - the forward PE is below 13.

I also like INTC and think that it represents an excellent value for a long-term investment.

Congrats on your selection. I enjoy reading your posts.

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