Why Own McDonalds Stock?

Why Own McDonalds Stock

By
www.ProfitableInvestingTips.com

• McDonalds stock (MCD) has slipped a bit
of late but many analysts are expecting a
comeback based on changes in the
business, share repurchases, and higher
dividends.

http://www.profitableinvestingtips.com/profitableinvesting-tips/why-own-mcdonalds-stock

• McDonalds is a lot like Microsoft. It is the
largest and most profitable in its niche and
has little room to grow.


• So, why own McDonalds stock? It is
unlikely to double or triple in value
and, some believe, only has a downside
risk. McDonalds is a stalwart.


• It is a mega large cap stock with stability,
international name recognition and lots of
cash.


• It is one of the great dividend stocks of the
widows and orphans variety.


• Take a look at MCD stock price over the
last two decades and you will see that it
has gone from $12 a share to the $80 to
$100 range with two splits along the way.


• Thus the current $97 share price is on a
stock that sold for $3 a share two decades
ago.


• The company currently pays a dividend of
3.24 percent a year which is twelve
percent on a 1993 share.


• This looks like the reason that people
leave their money in strong stocks and
answers the question why own McDonalds
stock, at least for conservative investors.


• McDonalds
Fundamental Analysis


• If you have resolved the question, why
own McDonalds stock, what does the
future hold for you and your shares?


• Many investors choose to by on a stock
correction and did so when McDonalds fell
into the $80 range.


• The company is the largest restaurant
chain in the world is pays close attention
to local tastes.


• It has the cash to expand where it is
profitable and makes money on both
company owned and franchise outlets.


• The global economic doldrums have
slowed growth of McDonalds but it is in an
enviable position to make money in
emerging markets in Asia and Latin
America.


• The company is steadily buying back
stock. The sum of these efforts is likely to
lead to slow but steady growth of the
exponential sort.


• Think of thirty-five thousand restaurants in
well over a hundred nations and the ability
to take advantage of growth opportunities
worldwide.


• If you are a dedicated long term
investor, why own McDonalds stock is
because it is a safe bet and likely to
continue its growth throughout this century
if not the next as well.


• Remember that the company intends to
steadily increase its dividends and
remember the 1993 to 2013 fourfold split
multiple.


• Exponential Growth of
Stocks


• Why own McDonalds stock is to take
advantage of slow but steady exponential
growth.


• Why own McDonald’s stock is to buy a
stock that is recession proof.


• Ask anyone who threw away their money
in the 2008 crash by putting it in
overleveraged hedge funds or bought into
the Bernie Madoff pyramid scheme.


• There are stocks that fly upwards and
there are stocks that plummet downwards
and they are too often the same stocks.


• Value investors tend to pick stocks with a
good margin of safety as well as reliable
growth prospects.


• Then, when the day is done, there is still
money in the account and it has been
growing exponentially all along the way.


• Ask yourself what is a good investment
and what are safe investments.


• Combine the two and you have the answer
to why own McDonalds stock.


Why Own McDonalds Stock?

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Why Own McDonalds Stock?