McDonald's (NYSE:MCD) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers two-and-a-half reasons he's holding on to McDonald's stock despite its small rise since he bought those shares a little more than a year ago.
To summarize, McDonald's sports:
- A decent balance sheet, with a debt-to-equity ratio around 0.9.
- A well-covered dividend with a 56% payout ratio and a decent history of increasing that dividend.
- A market cap that's not too far ahead of the iPIG portfolio's fair-value estimate.
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