Here's Why Dividend Investors Should Own McDonald's Stock

Are you looking for a great dividend stock? If so, then you could do a lot worse than McDonald's.

Apr 13, 2014 at 11:18AM


Fast-food giant McDonald's (NYSE:MCD) is a staple of the American economy. It's also a favorite investment among income-seeking investors.

Does this mean it's a great dividend stock to buy today? In the following video, Motley Fool contributor John Maxfield explains why the answer is yes.

In the first case, its 3.3% yield easily outpaces the general market, measured by the S&P 500's 1.96% yield. Additionally, it distributes only 56% of its earnings to shareholders each quarter, meaning there's plenty of room left for its dividend to grow. Finally, McDonald's has now increased its dividend for 38 sequential years, qualifying it for inclusion in the coveted Dividend Aristocrats and suggesting that there's no reason for investors to fear that it will be cut anytime soon.

As John explains, these factors make McDonald's one of the best dividend stocks in the market today.

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John Maxfield has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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