As discussed yesterday, I had two trades for MCD scheduled for this morning. I have replaced the 10 shares of McDonalds in my brokerage account with 27 shares in my traditional IRA. Both trades were market trades that executed at $95.01 per share.
This trade completes the establishment of my full position in MCD, and allows me to direct future investment capital into different companies. With the recent dip from $100/per share it lowers my entry point a little also.
While MCD faces some tougher competition from other fast food chains – such as YUM – than it has in the past, I’m fairly comfortable that due to its sheer size and international scale it will maintain a dominant position.
I am hoping for an ongoing annual dividend increase of 9% per year or more, which is a little less that it has given in recent years. My starting yield is over 3%, so I can live without a double digit dividend growth rate, but would certainly welcome it!
The completion of this position in McDonalds takes care of diversification into the ‘dining out’ sector of the economy. I am enjoying see my portfolio grown in breadth, and seeing these great names slowly added. These are not exciting investments I am making, but hopefully they will prove to be successful ones in the long term.
Purchase of 27 shares of MCD at $95.01, for a cost basis of 2,565.27. Dividend yield at time of purchase is 3.13%. Dividend Reinvestment enabled. Initial dividend income $83.16 annually.