McDonald’s Corporation (MCD): This Dividend Champion Looks Tasty

McDonald´s has gross, operating and net margins that are way above those of its competitors, an unequivocal sign of business strength and management quality.

The company reported positive sales figures on Monday; new menu offerings seem to be bearing their fruits since global comparable sales increased by 2.6% in May, better than the 1.9% increase expected by Wall Street analysts. This should come as comforting news for investors who have been concerned about lackluster sales data in previous months.

Dividend champions are a select group of companies that have been able to increase dividends over the last 25 consecutive years. McDonald´s is not only part of that exclusive club; the company has raised its payments each and every year since paying its first dividend in 1976, so it has accumulated 35 consecutive dividend increases, and counting.

McDonald’s Corporation (NYSE:MCD) is yielding 3.1% in dividends, and considering its underlying strength and rock solid track record, investors have good reason to expect growing distributions from this fast food powerhouse over the coming years.

Bottom line

McDonald´s enjoys remarkable competitive strength, and its efficient business model produces big fat profit margins for investors. Even if competitive pressures are tough and rising, the company has proven it´s ability to survive and thrive through all kinds of scenarios. This dividend champion is looking like a tasty choice for investors looking for big and growing dividend payments.

The article This Dividend Champion Looks Tasty originally appeared on Fool.com and is written by Andrés Cardenal.

Andrés Cardenal has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill and McDonald’s. The Motley Fool owns shares of Chipotle Mexican Grill and McDonald’s. Andrés is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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