MCD - McDonald's: Double-Digit Upside Potential And Steady Dividend

2024-04-16 10:50:20 ET

Summary

• McDonald's stock is undervalued and offers a potential double-digit upside with a fair value estimate of $338 per share.
• The company is nearing dividend king status with 48 consecutive years of dividend increases.
• Despite challenges in the current economic environment, McDonald's has shown strong sales growth and is pursuing new growth initiatives.
• Free cash flow levels have increased while money being allocated to capital expenditures has also increased.

Overview

As a dividend investor, I love collecting income from companies whose products I personally consume. It adds a layer of authenticity to the concept of collecting passive income because you are able to physically see the company and people waiting in line to buy their products. In the case of McDonald's ( MCD ), they have grown to be one of the largest brands in the world with their recognizable golden arches....

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