I love cash cows! In fact, I love them so much that I decided to buy some and to breed them.
McDonald’s is a cash cow for its shareholders. Its dividend is at 3,24$ per share and they plan to give back 20 billions to shareholders over the next two years.
So, when I saw its stock price dip from +/- 106$ to +/-95$, I decided I should jump in and add extra shares to my current position with an initial yield of 3,39%.
Today I bought 12 extra shares of McDonald’s at 95,51$ per share. I now own 37 McDonald’s shares. This adds 38,88$ to my annual passive income or 10,7 cents per day 365 days per year.
As you might know, my goal is to retire early over my passive income. I’d like to retire from the rat race at or before my 45 th birthday with at least 65$ per day, 365 days a year in growing passive income.
I’m a little short of time tonight so I wont expand too much here. Anyway, McDonald’s is a classic and doesn’t need any presentation. I’ll just mention that currently, the company faces headwinds. Medias are not giving it a nice and positive coverage recently. Growth is not what it used to be and we’ll have to be careful about developing trends here. It’s still a cash cow, it’s still a nice brand, but is it still offering what people want their kids to eat?
I think that things will turn out well at least over the next two years but in this new era of fast telecommunications, things can change very fast!
Anyhow, I’m glad I could add to my position a a good relative price.
Image courtesy of joephotostudio / freedigitalphoto.net