Monday, July 29, 2013

Recent Buy - McDonalds (MCD)

Today I opened a new position in McDonalds (MCD). I purchased 11 shares at $98. McDonalds was under some selling pressure after last weeks earnings miss so I was lucky enough to get in under $100. MCD has increased its dividend for 36 consecutive years, making it a dividend champion, i.e. more than 24 years of consecutive increases. It's because of this stellar record that McDonald's stock is held by so many dividend growth investors, and that's why I am adding it to my portfolio.

McDonald’s Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. As of December 31, 2012, the company operated 34,480 restaurants in 119 countries worldwide and serve 69 million customers each day.

MCD Basic Statistics

  • Ticker Symbol: MCD
  • PE Ratio: 18.18
  • Yield: 3.1%
  • Dividend Growth 10yr:  9.2%
  • Payout Ratio: 55%
  • Market cap: $98 B
  • Website: 

Saturday, July 13, 2013

Captains Picks

Captain's Picks is a collection of various articles that have caught my eye recently. I think you may find them interesting. Here's this weeks crop .... 

Colgate Palmolive Stock: An Essential Core Holding In Your Portfolio - Tim wrote a nice article about the strength of this blue chip dividend stock and why it belongs in your portfolio.

Philip Morris Dividend Stock Analysis - Dan Mac does another great dividend stock analysis, this time he sets his eyes on the tobacco giant PM. 

Microsoft Dividend Fact Sheet - 'Dividend Engineering' breaks down the facts of Microsoft as a dividend stock and if it makes sense to buy at current levels.

Highest Yielding Stocks With Dividend Growth - 'Dividend Ladder' reveals the top dividend stocks based on his screening criteria. There's some very strong names on this list.

How To Accumulate Your Nest Egg - There are a few basic ways to grow your nest egg, 'Dividend Growth Investor' covers them in this piece.

A 25 Year Investment Case Study Of Chevron - Joshua Kennon illustrates the power of dividend investing with a 25 year case study of what a $100,000 investment in Chevron would have

June Dividend Income Updates

My Financial Journey
Spice Mind
Compounding Income
Dividend Mantra
Exponential Dividends
Passive Income Pursuit
All About Interest
Dividend Growth Machine
Accumulating Assets

Wednesday, July 3, 2013

Recent Buy - General Mills (GIS)

Today I added to my position in General Mills (GIS). I purchased another 22 shares at $49.12 raising my total shares to 55. General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company also supplies branded and unbranded food products to the foodservice and commercial baking industries.  This dividend achiever has paid dividends since 1898, and has increased them for ten years in a row.

It was a difficult task trying to find an undervalued stock for the month of August. I had some other stocks on my watch list I thought about buying but those seemed a bit overpriced (CLX for example). I don't believe GIS is undervalued at this price by any means but I don't think I will look back and regret this trade in 20 years. I have given up on trying to time the market.

GIS Basic Statistics

  • Ticker Symbol: GIS
  • PE Ratio: 17.54
  • Yield: 3.1%
  • Dividend Growth 10yr:  8.7%
  • Payout Ratio: 47%
  • Market cap: $31.46 B
  • Website:

GIS VS S&P 500

The annual dividend payment has increased by 8.70% per year over the past decade, which is slightly higher than the growth in EPS. A 9% growth in distributions translates into the dividend payment doubling almost every eight years on average. If we look at historical data, going as far back as 1986, one would notice that the company has managed to double distributions every eight and a half years on average. GIS recently approved a 15% increase in the dividend rate effective with the August 1, 2013 payment. The increase will bring the payments up from $.33 to $.38 per share.