3 Reasons to Hold on to McDonald's Stock

Updated
3 Reasons to Hold on to McDonald's Stock

McDonald's 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.

Who hasn't heard of McDonald's?
Investing Guru Peter Lynch's most famous investing principle is "Invest in What You Know." McDonald's is one of the world's most universally well known companies, and it or another well-known business might be an excellent first step into the world of investing. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.

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

The article 3 Reasons to Hold on to McDonald's Stock originally appeared on Fool.com.

Chuck Saletta owns shares of McDonald's. The Motley Fool recommends McDonald's. The Motley Fool owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement