Global Fast Foods Company With a Growing Yield of 2.5% Maintains Position on Best Dividend Stocks List
Aaron Levitt Mar 20, 2019
Iconic brands. They’re what create strong cash flows. And nowhere does this matter more than in the consumer products sector. Becoming the standard bearer for your niche can result in years’ worth of profit and revenue growth. Moreover, it results in plenty of dividend growth as well. That’s exactly the case with our Best Dividend Stocks List pick in the consumer sector.
As one of the largest restaurant owners in the world, our pick has moved beyond being just a discretionary item and has become a “staple” for many consumers. Each day, millions of customers flock to its restaurants across the globe. It truly has transcended being just a place to have a burger and has moved into the public consciousness. With that, the firm has become a profit and dividend machine over the years. In fact, its enviable moat has allowed it to grow dividends for over 40 years, including its latest boost of nearly 15%.
But our pick isn’t done yet.
New moves into higher-margined items, store remodels and aggressive pricing are starting to pay some serious benefits for our pick. Despite being a “staple,” our selection has become “cool” with the younger and hip set. Rising social media sentiment has actually increased sales in a meaningful way. Adding a dash of “coolness” to its huge enviable moat will only benefit the stock further down the road.
When you add up all the positives, our pick’s strong sales, cash flows and long dividend history make it an ideal selection for income seekers going forward.
Check out our original pick here.
To summarize, here are five reasons why you should own this stock:
1. Earnings per share increased a whopping 18% for full-year 2018 and the firm recorded more than $20 billion in total sales.
2. Over 35,000 restaurants/locations in 100 countries, with an eye towards emerging markets.
3. Brand has become a go-to place for younger consumers as shown by rising Instagram and social media posts. This has driven sales further.
4. Has grown its dividend for 40+ years straight.
5. Healthy payout ratio of 60% and growing yield of 2.50%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.
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