The Power of McDonald’s Corporation (MCD)’s Dividends


McDonald’s has maintained a fair valuation as its business is relatively predictable without too many significant surprises. The company is valued a little higher than the S&P 500, with a forward PE of 16, a PEG of 2.04, and a price to book ratio of 6.72. However, this is a typical valuation for a relatively predictable business.


McDonald’s has performed well over long periods of time. The company typically bounces back from bumps in the road as experienced in the under-performing 2012, when the stock lagged the market. The stock is now back above $100 and in vogue with investors. With its extensive and growing global restaurant footprint, consistently rising dividends, large economies of scale, and ability to adapt to changing consumer tastes, I’m confident that McDonald’s Corporation (NYSE:MCD) will continue to be a winning investment over time.

David Zanoni owns shares of McDonald’s. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s.

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