Posted on September 26, 2012
Just about everyone knows or has been to a McDonald’s restaurant somewhere in the world. Most of us have made more than one trip. This statistic is a good thing if you move from the food to ask would it fit my investment portfolio? McDonald’s has been and likely will continue to be a very good stock to own. There are a number of companies serving food, but few can match McDonald’s for its past stock performance. According to John Heinzl (jheinzl@globeandmail,com) if you had bought $10,000 of McDonald’s shares in 2002 and held it for 10 years with the dividends reinvested, the money would now be worth $66,261. The yield equates to 17.7% which many people have not seen in this low interest rate environment in which we are in. Will McDonald’s continue along these lines? the answer is it should.
Linking to dividend producing stocks, McDonald’s and companies like it are available to be seen by everyone. We all have our biases, the lesson is to examine a variety of companies that fit the financial performance you wish to achieve . Even though the food industry is very competitive, just because an industry is competitive there are opportunities for you to take advantage of.
There are always more questions than answers, till next time – to raising questions.