Mcdonalds Stock

McDonalds(MCD) stock has just gone through a little correcting phase in the last few weeks. It's around 10% of it's all time high. Still love the company long term and the dividend is a very attractive over 3%. They will raise it every year like their history has shown so this one keeps up with inflation easily. The company is still growing and should continue to do so. Long term buy and hold for ever! Tony

McDonalds (MCD)

Update to my Black friday predictions. Retail sales were strong and the fast food stocks, MCD in particular benefited from them big time. Look for really strong sales numbers from MCD this quarter! For one the McRibs coup worked like a charm. I know people that went to McDonalds 10 times in the last 6 weeks just to get the "
Limited" time only McRibs. Not only that but they have been doing less discounting so look for higher profit margins also. I would thing $100 a share within 6 months easily. Also look for another dividend raise in the 3rd quarter of 2011. Got to love that! Happy Investing. Tony

P.S. - The reverse is trends at Burger King, really bad! They are discounting but still losing market share to MCD and WEN. Stay away from them for sure.

Black Friday

I beleive we are in for a huge black friday for retail sales this year. As a result the fast food stocks should get a nice revenue boost also. While people are out shopping they need to eat and grabbing something quick fits in with this perfectly. Mcdonalds(MCD) and Wendys(WEN) should both benefit from this trend. I still love both of these stocks short term and long. Happy ThanksGiving and good luck investing. Tony

Wendys Revistied

I am liking my Wendys(WEN) pick more and more these days. They raised their dividend and increased their buy back program. Not only that but they are going to make another attempt at getting some of the really profitable breakfast business away from the big boys, McDonalds and Burger King. Also I have noticed the stores in my area, northern Bergen County, have been getting busier. I expect next quarter to be better than everyone thinks. Good luck investing. Tony

Wendys Stock

Wendys(WEN) is on the rise again. It's almost at $5 a share. They just raised their dividend by 33% and announced another share buy back. I like it big time! Long and short term buy this one and reep the benifits. Happy investing. Tony

So Far So Good

Wendys(WEN) is making a nice comeback. Everything is on track for $6.50 a share within 2 years. It may move faster if a take out offer is made. Also you will collect around a 1.5% dividend in while you wait. Happy investing. Tony

I Told You So.

I hate to say those words but Wendy's(WEN)is starting to move finally. Up today over 6% on 5 times the normal volume. Still not too late to get in on this one. I think $6.5 a share within 2 years is easily possible. Happy Investing. Tony

The Power of Dividends

I am not the only one that invests with this style. Read this post from Marketwatch.com. Tony

ROCKVILLE, Md. (MarketWatch) -- Wouldn't it be great if you could pick stocks for free and still reap the rewards if they do well?



Unless you have a rich benefactor doling out play money or you count your paper trades as "profits," that's just a pipe dream for most of us.



But dividend-stock investors can get the next best thing via high-yield plays with reliable paydays. These companies can literally pay for themselves in a decade or so -- and then the value of the shares is 100% profit when you cash out.







Not every dividend stock pays for itself in a reasonable time, of course. Companies that slash payouts or keep yields at 1% or so could take a lifetime to shell out the dividends to offset your initial investment. But a select group of stocks have "paid" for themselves in less than 15 years of disbursements. That's certainly long term, but considering that many of these picks also have seen share prices jump dramatically, that 100% return on investment is nothing to sniff at. Read about the best dividend stocks to grow your nest egg.



Here are seven high-yield dividend stocks that have paid for themselves in less than 15 years, using real dividends and real share prices from the third quarter of 1995 to the present day:



Altria Group Inc.



Adjusted share price Oct. 2, 1995: $6.42. Dividends paid since Oct. 2, 1995: $32.19.



The math is a bit strange accounting for the 2008 spinoff of Philip Morris and a 3-for-1 split in 1997. But investors who jumped into what is now Altria in 1995 had a cost basis of around $6.42. The total dividends paid by Altria across the last 15 years add up to $32.19. That means the stock is paid for and then some even at current valuations -- though on this cost basis, shares would be paid for five times over. And that's not counting the 0.7 of a shares of Kraft Foods Inc. for every one share of Altria held in 2007 when it spun off its majority stake. Current investors should be pleased that Altria still has a big dividend payday, with a current yield of 6.3%.



Consolidated Edison Inc.



Share price Oct. 2, 1995: $30.50. Dividends paid since Oct. 2, 1995: $33.47.



The math on utility stock Consolidated Edison is a bit easier, with no splits to worry about. Shares are up 60% from valuations 15 years ago, and the regular dividend payments add up to a total of $33.47. It's worth noting that ED has paid a dividend on its shares for 125 consecutive years, so it's highly unlikely this stock will stop paying for itself anytime in the near future. Current yield for ConEdison is 4.8%. Read about utilities to avoid.



Dominion Resources Inc.



Adjusted share price Oct. 2, 1995: $18.94. Dividends paid since Oct. 2, 1995: $36.10.



Another stalwart utility stock, Dominion Resources , has seen shares more than double over the last 15 years when adjusted for a 2-for-1 stock split in 2007. But that's not the only way this pick has paid for itself -- this utility stock has delivered $36.10 a share in dividend payments since 1995. That almost pays for the current price of the stock, and is almost double the initial buy-in per share 15 years ago. Dominion stock currently yields a dividend of 4.1%, so it remains a pretty strong dividend play.



General Electric Co.



Adjusted share price Oct. 2, 1995: $10.58. Dividends paid since Oct. 2, 1995: $15.94.



Much-maligned conglomerate General Electric was trading for under $11 a share 15 years ago (accounting for a 2-for-1 split in 1997 and a 3-for-1 split in 2000). The GE haters will point out that a return of around 55% in 15 years is hardly better than a CD -- and let's not forget that 75% drop from its dot-com highs. Still, dividend investors have been rewarded by this company over the long term, despite recent slashes in payouts and a yield that remains a fraction of levels enjoyed a few years ago. GE has paid for itself 1.5 times over since 1995, and has even paid for itself at current valuations. GE stock currently yields about 2.9%. Read about five stocks set to rally in a short squeeze.



Public Storage Inc.



Share price Oct. 2, 1995: $18.50. Dividends paid since Oct. 2, 1995: $24.93.



Technically a real-estate investment trust, Public Storage is a dividend stalwart that has paid for itself easily in the past 15 years. What's more, share prices are up about 450% in the last decade and a half, making this a heck of a retirement investment for those who jumped in back in 1995. Current dividend yield for Public Storage is 3.1%. The company could be a strong investment as many people are afraid to buy a home in this volatile housing market, and are relying on storage units to house their furnishings as they rent.



Rayonier Inc.



Adjusted share price Oct. 2, 1995: $14.23. Dividends paid since Oct. 2, 1995: $20.34.



Also technically an REIT just like Public Storage, timber powerhouse Rayonier has been paying dividends since 1994 and has paid for itself for any investor that bought in across those early years. After two 3-for-2 stock splits (one in 2003 and one in 2005), Rayonier stock was trading for an adjusted price of around $14 in 1995, and has paid more than $20 in dividends. Equally pleasing are the stock's 15-year returns, with gains of about 180%. The current dividend for Rayonier is 4%.



United Technologies Corp.



Adjusted share price Oct. 2, 1995: $10.84. Dividends paid since Oct. 2, 1995: $11.28.



Aerospace and industrial giant United Technologies has seen three 2-for-1 splits -- in 1996, 1999 and 2005. Adjusted for those events, investors would have bought into UTX at under $11 a share in 1995 and enjoyed a stunning return of nearly 550% in the next 15 years. To top it off, United Technologies shares would have paid for themselves with more than $11 in dividends. Current dividend yield for UTX is 2.4%.



Jeff Reeves is the editor of InvestorPlace.com. Follow him on Twitter at twitter.com/JeffReevesIP

Dividend Increase

Not to pat myself on the back but McDonalds(MCD) was a great stock idea made on this BLOG a while back. Today they announced an 11% increase in their Dividend starting next quarter. Also the stock is trading at close to it’s all time high currently at $75 a share. When I first wrote about it was in the $50 a share range. It’s one of those buy once and hold forever stocks that I love for the long haul. Plus they raise their dividend almost every year so you more than keep up with inflation even if the stock stays flat! Wendys(WEN) is taking awhile to turn around but I still believe this is a good place to park money that you should be able to cash out in 2-3 years once they turn it around or they get bought out at a premium. Happy investing. Tony

Stock Pick Updates

Finally some vindication! Wendys stock is on the move, as well as the whole market. McDonald's is at a new all time high, this one I have been recommending to all my friends and family for some time now. It's not too late to get into this bull move in the market. I still recommend buying quality dividend paying stocks for the long haul. Happy Investing. Tony

Kraft Foods(KFT)

Here is an article supporting my pick of Kraft Foods(KFT) for long term purchase. Goof luck investing. Tony


INTERVIEW: Kraft Foods To Raise Profile Of Cadbury Products In China


Aug 13, 2010 00:27:34 (ET)


By Jeffrey Ng


Of DOW JONES NEWSWIRES



HONG KONG (Dow Jones)--Kraft Foods Inc. (KFT) is seeking to raise the profile of Cadbury products in China as the U.S. food giant ramps up investments in developing markets, particularly the Asia-Pacific region, which has become Kraft's key growth driver following its multi-billion dollar acquisition of the British confectioner earlier this year.



The Northfield, Illinois-based company, with brands such as Kraft, Maxwell House, Tang and Oreo, has been expanding its presence in developing markets over the last three years amid slowing growth at home. It spent US$7.2 billion to buy Groupe Danone SA's global biscuit business in 2007 to give it a stronger toehold in countries such as China and Indonesia.



Kraft Chief Executive Irene Rosenfeld said the company's US$19 billion purchase of Cadbury PLC was "just the next step in that evolution." Kraft targeted the confectionary producer in large part because of its presence in fast-growing developing markets in Latin America, Asia-Pacific and the Middle East.



Rosenfeld told Dow Jones Newswires in an interview that Kraft is placing "disproportionate focus" on Asia-Pacific, mainly because of the strength of the Indian and Chinese consumer markets, in which the company expects to see "explosive growth" in the future.



The world's second-largest food company after Nestle SA doesn't break down its figures for Asia-Pacific, but it has said its operating profit for the region has registered double-digit growth since 2008, and it expects a similar trend to continue.



Though Cadbury has had a strong position in India, its presence in mainland China--Kraft's fastest growing market--has been very small. Rosenfeld said she hopes to build on the success of Kraft's Oreo cookies in China with Cadbury's line of products, which include Dairy Milk, Trident, Dentyne chewing gum and Halls cough drops.



Kraft's China revenue has quadrupled over the last four years, helped by the acquisition of the Danone biscuit business, which provided a strong distribution platform for Kraft to market flagship products such as Oreo.



Efforts to cater to local tastes by reducing the sweetness of Oreo cookies sold in China have helped make the brand the best-selling packaged cookie in the country, according to Kraft.



"I think you will see a similar step-up in a number of the core Cadbury businesses," said Rosenfeld. "Cadbury was essentially sub-scale in that market and today, as part of the Kraft family, the infrastructure is considerably greater and our opportunity then to penetrate the country...is that much greater."



Rosenfeld added she expects the Cadbury franchise in China to be a "very important and significant growth engine for us in the next couple of years," but declined to give projections.



Kraft has already taken Cadbury's Halls cough drops to outlets in China that carry Kraft products, and the company expects similar opportunities to raise awareness of other Cadbury brands.



The company is also realizing operational savings in China with the combination of the two businesses. For example, the company is making surplus sugar from its Tang factory available for use at Cadbury's Halls factory, which is just 500 meters away, said Rosenfeld.



In addition, she said the company is in the process of consolidating the China headquarters of Cadbury and Kraft in Kraft's Shanghai offices. Cadbury had been operating out of Beijing.



The inclusion of Cadbury's operations helped boost Kraft's second-quarter net revenue from developing markets by 73.4% from a year earlier to US$3.30 billion, surpassing contributions from Europe, and accounting for 27% of its total US$12.25 billion of revenue for the quarter.



Rosenfeld said Kraft will invest more heavily in developing markets, especially in Asia-Pacific, to drive growth from a strong base. Aggregate spending in the region will be "considerably north of" the 8% of revenue Kraft has planned for the company as a whole, she said, though specific investment figures haven't been finalized.



But she said new acquisitions won't be part of Kraft's investment plans. "I feel very good about our portfolio, and it will be many years before we work through some of the opportunities, so I would say it would be premature to comment on those kinds of opportunities."



Since becoming CEO in 2006, Rosenfeld has led an effort to make Kraft a bigger, more profitable company through acquisitions and investments in major brands.



Under her watch, the company's developing-market strategy has involved placing particular focus on 10 products in 10 key markets, helping boost profits from the segment by 24% over the last three years.



With the Cadbury deal, Kraft has added Trident, Halls, and Dairy Milk to its list of 10 focus products and put India on the map as a target market.



Rosenfeld said she looks forward to building Kraft's businesses in China and India to the point where they each generate US$1 billion in revenues a year, putting them on a level with the company's operations in Russia and Brazil, though she declined to provide a timeframe. "I'm quite optimistic about the future of our business in this region."



-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com



(END) Dow Jones Newswires



August 13, 2010 00:15 ET (04:15 GMT)

Wendys (WEN)

Wendy's stock is slowly making a comeback. I have noticed the traffic picking up in their local 3 stores here in North Jersey. I love their new premium chicken offerings and the Bacon n Blue is awesome! I look for the stock to slowly rise towards the $6 a share range by next spring. So look for a 40% gain from here and collect the dividend in the mean time. Happy investing. Tony

McDonald's Stock Pick

So far so good! My pick of MCD for the long haul is looking good so far. They have raised their dividend and their stock buy back program. Management is telling us things are looking good for the company. Buy and hold forever, in IMHO. Happy Investing. Tony

Wendys (WEN)

I am still sticking with my Wendys stock pick. They are turning things around, just give them time. Their new premium salads are great! They are getting in breakfast items also. Breakfast is a hard business for them to get into but the margins are really high. Collect the dividevd and wait for them to do a turn around. Good luck investing. Tony

Wendys(WEN) Revisited

So far in the short term I have been wrong on this stock. Still beleive you will make good money in it, longterm. So to me it's onsale and I am going to pick up some more shares this week. Plus I expect it to be in play at these low levels. Back up the trunk and buy more shares! Happy investing. Tony

Wendys Stock Pick

You heard it here first, told you all to buy WEN 2 months ago. Now that the stock is in play I expect it to really go up. It's not too late to get in on this one. I will pick up more shares on monday. Happy investing. Tony

Crazy Stock Market

This market is a tough ride for sure. We are in a severe roller coaster of a ride type of market right now. I say ignore it and look at the big picture. Lately we have been in a healthy correction, can you say buying opportunity? Just hang onto your quality dividend paying companies, you won't be sorry. Tony

Long Term Investing

What is going on with the market this week? To me is smells like a great buying opportunity for us long term buy and hold investors. You can now get in cheaply by buying Wendys(WEN), Kraft Foods(KFT), McDonalds(MCD), and a lot of the big name conservative dividend paying stocks. May have to ride through more short term bumps but in the long term you will do fine. My opinion is buy these companies and take your Dividend checks to the bank every 3 months! Ignore the crazy variance of the market and buy safe long term holding type of companies. Happy Investing. Tony

Wendys(WEN)

Don't like to give short term advice but WEN is about to shoot up. As the economy recovers stronger I expect Wendys to benefit from it big time. Buy now while it's on sale. Happy Investing. Tony

MCD Revisited

This post is an update to my choose to buy McDonald’s(MCD) stock. I have loved this one for years, what is there not to love? They are the dominate player in their category, fast food. Well run and established company with over 40 years in their sector. They have a long history of paying and raising their Dividend(Currently around 3.2%) year after year. The company is perfect for an automatic stock reinvestment program such as ING’s Sharebuilder account. I use them to make an even dollar amount purchase of MCD on the first Tuesday of every month. It’s a low cost way to pick up a few shares a month and all dividends purchase more shares, commission free I may add. Do your own research but IMHO MCD is the place to park long term buy and hold money for sure. Happy Investing. Tony

Stock Update

It looks like many of the Stocks I have talked about in this BLOG are doing really well now. It is true that a rising tide lifts all boats but the companies I have Blogged about have done so with less risk. Also all of them have a nice attractive yield to carry you ove while you wait for them to rise. Look for some new ideas from me this week. I will do some research and than post about what I come up with. Happy investing and Happy Easter. Tony

Another Wendys Update

This week they announced another Share Buy Back program. The shares have been moving up on hig volume too. All good signs for this company. It's not too late to pick up these shares at these super low prices. I will pick some more up myself this week. Happy Investing. Tony

Wendys Update

Looks like my last post about Wendys/Arbys Group(WEN) was very timely. Even though I tend to look at the long term picture it’s always nice to get a nice short term gain. WEN is up around 8% since my last post about it. In today’s investing times I am happy to make that over a year so making it in a month is really sweet. I haven’t been getting many comments about my posts on this BLOG, where is the love? Getting comments is really important being it gives me an idea of what people expect to read about in this BLOG. Happy investing. Tony

Stock Turn Around Play

This post is about it being good to go against the herd sometimes when investing. I have a common sense out of favor conservative stock to consider to buy right now. I am talking about Wendy’s/Arby’s Group, symbol WEN. This company, the third largest, publically traded fast food company, lately has come on hard times. The stock has taken a huge haircut and is trading close to its 52 week low. In other words everyone has been selling so it’s now on sale big time. As the recession took hold they were very slow to introduce lower priced value items to their menu and as a result their earnings took a big hit. They are introducing breakfast items at Wendy’s and a value menu at Arby’s this year. These 2 things should help turn around their growth prospects. Also as the economy turns around people will start to eat out more and this company should benefit from this improvement. Their food is on the higher end of the fast food spectrum. It’s quality is almost as high as the casual dining sector they compete with. I believe as the economy turns people will trade up to their stores quicker than going out to eat at the lower end restaurants. They do have a small dividend of around 1.25%, so this helps also while you wait for the turn around. While this stock is more risky than many other I have posted about believe it’s a good long term buy. Tony

Market Correction

Today’s post is about the market correction going on. This is like a sale at Macy’s to me. Days like this are when I want to pick up stocks I have been keeping an eye on. GE has made a nice comeback off of its bottom in the high $6 a share range. It got all the way back up to $17 so now that its fallen back to below $15 I would buy more shares today or pick up my initial investment in it. You won’t be able to buy stocks at their lows but buying quality companies at beat down prices is great. As long as the stock price isn’t falling because of problems in the company itself I say now is a great buying opportunity. If you are a conservative buy and long term holder, like me, market corrections are a great time to pick up stocks. This seems like common sense but many people do the opposite and sell into these corrections, not me. Happy investing. Tony

McDonalds Revisited

MCD is doing everything right to drum up business during these tough economic times. I can buy dinner there for the same price as making dinner at home myself. They have attacked their opponants on all fronts. They have developed premiem sandwiches for an affordable price. While at the same time their dollar menu fights Burger King and Wendy's on price also. The new coffee is just as good as Dunkin Donuts for a better price. At the current price you can hold the stock and collect the 3.3% dividend that they will raise again at the end of this year. How can you go wrong? This is perfect stock for a conservative lomg term investment. Tony

Dividend Play Update

At&t is looking really cheap right now. At the current price the dividend yield is 6.6%, yum. Also it looks like their deal with Apple will continue an extra year at least. Providing the Iphone is creating a loyal following to use their voice and more profitable data services. Plus once a user buys an Iphone it can't be transferred over to another cell provided so they are locked in to using AT&T for awwhile. PE is low and the company is solid! I like all these factors for the long term. Happy investing. Tony

Obama and the Market

Why is it when our President speaks the market goes down? I don’t understand him at all. We help out the banks so now they are making money and paying taxes,(Which will help reduce our deficit in the long run.) so he wants to punish them for it. You can’t have it both ways. Besides we need companies creating jobs somewhere in this country. Wal-Mart and McDonalds aren’t able to employ our entire country. Also they don’t pay enough for people to live on! End of rant for today. Tony

This Week's Dividend Play

I will try to keep up with one of my new year’s goals of doing 1 post a week on this BLOG. BTW – A little disclaimer, for this BLOG, most of the Stocks I post about I already own in my personal brokerage account. This makes sense being I strongly believe in the investments I am writing about so I own them myself. I am not guaranteeing that the companies I am writing about here will make you money; IMHO they are good long term investments so I put my money where my mouth is. Today’s dividend paying long term investment is General Electric(GE). At the current price and dividend yield of 2.4% I believe it’s a long term buy and hold. Solid company that is either number 1 or 2 in almost every segment they make products in. NBC is currently having some problems but once they get them worked out the stock should move up from these levels. Last March when the market was at its lowest point my brother and I both picked up more shares around $7 a share. Now that it’s $16.50 I am very happy with that decision. Before all the worldwide recession problems the shares were in the $40 range! I believe they will be back there within 3 years plus you get the 2.4% dividend play in the mean time. Also things are improving so they will probably raise the dividend within the next year, so it’s icing on the cake. Good luck investing. Tony

Another Great Dividend Play

This post is about another great dividend play I like a lot. I am talking about Kraft Foods(KFT). This is a solid mature well run company that should be part of everyone’s long term portfolio. At the current prices the dividend yield is around 3.2%. So if the stock doesn’t move at all you are making 3.2%, not including the effects of the next time they raise it. They are the number 2 food company in the world. Being the world’s economies are still coming out of the worldwide recession this safe food company is a great conservative place to put some money. Also I believe they will be successful in acquiring Cadbury, which will give them the number one candy producing spot in the world. Again this company fits my investing philosophy of investing in what you know. I buy their products all the time being they are of a much higher quality than the store brands and most of their completion. This to me is a long term buy and forget about investment. Also no I don’t believe that buy and hold investing is dead, like many people in the industry have been saying. Thanks for reading. Tony

Invest in What You Know

When I was younger and just starting out investing I read a book about investing that really shaped my ideas. I read one of Peter Lynch’s, the famous manager of the Fidelity Magellan fund, books on being an individual investor. His biggest idea is you need to invest in what you know. (BTW – Warren Buffet has stated this himself a number of times.) I totally agree with this idea. If you can’t describe what a company does/makes in a few sentences you have no place investing in it. I understand what each company I invest in does in full. Case in point is my pick of McDonald’s(MCD), everyone knows what they do. Totally believe in them and the products they sell. The company’s long term prospects are excellent IMHO. They invest a ton of money in product development and advertising every year. In other words they re-invest in the company’s long term future every year. (Plus they reward us shareholders by raising up the dividend they pay us almost every year.) Great blue chips companies, hard to find them sometimes, like MCD is where I want my long term money to be. I will post about some other blue chip safe dividend paying stocks I like this week. Thanks for reading. Tony

Dividend Paying Stocks

I love dividend paying stocks. Why you ask? While I am waiting for the stock to reach it's true value have a steady income stream to collect in the mean time. Case in point I love AT&T(T) and Verizon(VZ) right now. Both companies are out of favor and both pay huge dividends right now. (Both around 6%!) What this means is you can hold either stock for the next 5 years and they can stay at the same price and you will collect the 6% every year! Better yet they can raise there dividend at any time. Also love McDonalds(MCD) right now. It pays a smaller, around 3% dividend, they raised it last quarter. They probably will raise it again sometime this year. These are common sense safe conservative investments. That's it for today. Tony

First Post

I am a 42 year Computer Programmer by profession. Have been an amateur stock picker/investor for 20 years. This BLOG will be about my common sense Conservative investing philosophy. I don't pretend to be an expert, so take what you read here with a grain of salt. Have done well for myself investing over the years. I will try to do a post at least once a week. That's it for now just wanted to do this post to say hi. Tony