Three Dow Dynamos That Helped the Benchmark Reach a Record High: International Business Machines Corp. (IBM), McDonald’s Corporation (MCD)

IBM has a modest P/E of 14.45, yields 1.63% and has a strong history of repurchasing shares.

Buffett said on CNBC that American businesses are presently a great place to put your money. More specifically, American businesses that “are earning good money, that have high returns on equity, have high returns on incremental capital, are buying their stocks at a rapid rate so that your ownership in the business increases significantly.” In that statement, he was describing International Business Machines Corp. (IBM).

McDonald’s Corporation (NYSE:MCD) has morphed from a burgers and fries joint into a multifaceted global casual dining spot. It is one of the most popular and recognized brands in the world. That has given it an inherent advantage over competitors. Also giving it a distinct edge is its hefty number of stores in heavily trafficked areas, unparalleled ad budget and new product introductions like Fish McBites and regional friendly breakfast items, which continue to woo and wow customers.

The Chicago based company is quick to adjust to shifts in the economy, changing palates and health conscious consumers and advocates.

Shares trade at a moderate P/E of 18 and carry a dividend yield of an appetizing 3.18%.

The article Three Dow Dynamos That Helped the Benchmark Reach a Record High originally appeared on Fool.com and is written by Diane Alter.

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