McDonald's (MCD 1.35%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons why he's holding on to McDonald's stock despite the company's gain since he bought it early this year.

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To summarize:

  • Valuation -- reasonable and in line with my fair-value estimate
  • Balance sheet -- healthy, with a low enough debt-to-equity ratio that debt rollovers shouldn't be a problem
  • Dividend -- well-covered, growing, and offering a decent current yield