The latest addition to my portfolio is McDonald's. This morning I decided I needed to get some egg mcmuffins to satisfy my craving. I love those things. While eating my breakfast I checked premarket trading and noticed MCD was down. I put in a limit order for MCD while eating egg mcmuffins which is kind of funny now that I think about it. Anyways I bought 13 shares which were purchased at $95.92 + commissions. This amounts to an entry yield of about 2.9% and will pay me $36.40/year.
Everytime I go to McDonalds there are plenty of customers. Their business plan is obviously working. Even in Thailand the restaurant was busy. The burgers and fries tasted the same as in the states, it was awesome. When I was flying home from Kuwait last year I had to stay overnight at an airbase with a McDonald's. Guess what? It was packed. Everywhere I go there is a McDonald's and people are happy to pay for their food.
I've stated this before; I've wanted to be a McDonald's stock holder for a long time. I had many chances in 2011, but never pulled the trigger. I consider MCD to be one the premier dividend growth stocks in the same league as PM, CVX, JNJ, PG, and KO. In the past MCD has grown its dividend at a tremendous rate which I foresee slowing down. I'm okay with that.
While I'm not ecstatic about the share price I paid, I feel it is reasonable. I'd like to add to this position in the future and would welcome further price declines.