Alert: McDonald’s (MCD) is a Very Attractive Buy Now
by Mark R. Hake
It's dividend yield of 2.5% is well covered by this year’s expected earnings of $5.76 per share.
Moreover, 35 analysts polled by Yahoo! Finance expect McDonald’s to grow earnings by 39% next year to $7.99.
McDonald’s generated $1.064 billion in free cash flow last quarter, after all quarterly costs and capital expenditures.
Therefore, FCF was still high enough to pay for its quarterly dividend that costs $905 million.
Moreover, the company decided to continue its ongoing stock repurchase program. That cost another $902.6 million. Granted, this was down from the $1.44 billion it spent on buybacks in Q4.
It is trading for a cheap 24 times earnings, a 2.6% dividend yield, and an attractive upside of at least 18%.
Source: Investor Place
https://dailytradealert.com/2020/07/25/ ... e-buy-now/