I bought 15 shares of McDonald's (MCD) today at $86.40 + commissions. This comes out to a yield of 3.22% which is quite attractive. Obviously the stock market has taken a major hit lately. I don't know what will happen, but my gut feeling is that it will continue to decline. There are a lot of negatives going on right now and many investors are getting out. I do not see this getting as ugly as 2008 which was a consequence of stupid bank practices and the housing bubble.
I will continue adding to my positions, but I think I might wait a week or two for the the next purchase. There are A LOT of dividend growth stocks trading at reasonable prices at the moment. Take your pick, there is a good menu to choose from. Telecoms and utilities are still propped up in price, I will avoid those for now.
Hmm this is one of most popular shares along with Coca cola at dividend investors. Will look at whats up with them at next quarter. Yes the best time to buy is when markets are down, and when they are clearly overevaluated at peak times you should even consider selling some over evaluated shares.
ReplyDeleteLooking forward to your analysis, you do great work. I have a harder time determining when to sell than figuring out when to buy. I hope to hold these stocks for the next 20, 30, 40 years, but I will sell when something is clearly overvalued. I haven't seen it yet. It's tough to sell because I enjoy owning most of these companies. I love ordering a cheeseburger at McDonald's and knowing part of the profit will be returned to me as a dividend. My buying habits are influenced by my stocks. It's kind of funny.
DeleteNice purchase. I added to my MCD position in May, although at a higher price. I think the company will continue to do well for many years to come.
ReplyDeleteMy buying habits are also influenced by my stocks to some extent. I find myself on the lookout for products of companies that I own, sometimes with the aim of purchasing them. Other times I will see a product in my daily life and remark "Hey, I own the company that makes that!" I find myself paying much more attention to who makes what.
I've bought MCD 3 of the last 4 months and will buy more if it goes down further. Unfortunately the stock market went up a bit the past few days but it could just as easily go back down.
DeleteGreat purchase! I agree, lots of tempting dividend stocks out there... I settled for some CVX during the last pullback.
ReplyDeleteHappy investing!
Nice pick, CVX is one of the top dividend growth stocks in my opinion. I almost bought CVX the other week when it was trading in the mid 90's. Too bad I didn't, it already jumped up to $104!
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