Top 5 Blue Chip Companies To Own In Right Now

Top 5 Blue Chip Companies To Own In Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Ben Levisohn]

  Say what you will about McDonald’s (MCD)–and a lot has been said–but it just increased its dividend for the 38th consecutive year. Still, Morgan Stanley’s John Glass and team worry that McDonald’s streak could be in jeopardy if the fast-food giant doesn’t turn its business around:

  Andrew Hinderaker for The Wall Street Journal

  McDonald’s announced 5% dividend increase is better than we expected against low expectations. Despite an expected decline in operating income this year, McDonald’s could in part fund this increase with reductions in capital spending.

  McDonald’s announced a 5% dividend increase to 0.85c, greater than our 0.83c estimate (+2.5% Y/Y). This puts the annualized dividend yield at 3.6%, among the highest in restaurants. McDonald’s reiterated its goal of returning $18-20B to shareholders through dividends and buybacks, putting it just behind pace ($3.2B returned or 16-18% complete in 20% of the time). Dividends/shr grew faster than EPS in '12 and '13, and are expected to again in '14, putting the dividend payout in '14 at 61% vs. 47% in '11. We expect this payout ratio to normalize over time and to fall below 60% in '15 (assuming another 5% dividend/shr increase). However, if a recov! ery stalls, continued dividend growth could be at risk.

  Shares of McDonald’s have gained 0.9% to $94.35 at 1:38 p.m. today.

• [By Quantum Research]

  The American fast food giant McDonald's (MCD), continues to face sluggish sales in the month of August. With the demand for burgers falling in its domestic market in the U.S. and health scare arising in China, comparable store sales are getting adversely hit. Issues regarding food safety leveled among the Chinese suppliers and growing health consciousness among Americans is having a bearing on the company's revenue. Considering that this is the key revenue driver of the company, is it something the company should be worried about?

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-blue-chip-companies-to-own-in-right-now-2.html