Portfolio Update: Why I purchased McDonald’s

McDonald's

McDonald’s [MCD Trend] has been on my personal watch-list for quite a while now, but the price hasn’t come very close to my target buy price of $88 so it fell off my radar a bit. The other day I read an article in the Globe & Mail called “McDonald’s stock may yet regain its sizzle” by John Heinzl that sparked my interest. When I read his article it reminded me that McDonald’s is due for a dividend increase in about 2-3 weeks time, so it might be time to increase my target buy price and have another look at McDonald’s.

My target buy prices are based on a number of different factors, but I usually use dividend yield to tweak them to a reasonably conservative target. McDonald’s has been increasing its dividend for 38 years in a row, and in the past decade they’ve declared annual dividend increases in mid to late September. I’d wager this trend will continue. Here’s a look at the past 6 dividend increases:

McDonald’s is an internationally known restaurant chain that sells fast food across the world. This wide

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How To Combat Inflation With Dividend Growth And Protect Your Purchasing Power

Financial Crisis / Finanzkrise

As you know from my past few posts I’ve been reading Lowell Miller’s The Single Best Investment: Creating Wealth with Dividend Growth. One thing that surprised me a bit was his comments about inflation. The author pointed out that the 60 year average inflation rate in the United States is 4.1%. The book was written 8 years ago in 2006 and has a US focus, so I decided to do some of my own research to see if this figure was still accurate.

What is inflation?

Before I dive into the results, I want to explain what inflation is. Investopedia defines inflation as

“The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.” […] “As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.”

The Bank of Canada website has an inflation calculator that you can play around with to get an idea of how inflation affects your purchasing power. Here are a few of my results:

… Continue reading How To Combat Inflation With Dividend Growth And Protect Your Purchasing Power

The Yakezie Challenge

I’m excited to announce that I have joined the Yakezie Challenge. The Yakezie Challenge is a 6 month challenge for financial bloggers to reach an Alexa ranking (Ranking of the popularity of websites) of 200,000 or higher.

I’m looking forward to this challenge for a number of reasons:

  • It’ll help me setup a great network of like-minded individuals doing the same thing as me.
  • It’ll help me stay focused.
  • It’ll improve my blog.
  • It’ll help me setup a great network of like-minded individuals doing the same thing as me.

    The Yakezie Network is a group of primarily financial bloggers. They are mostly established blogs/websites and have gone through the experience of starting a blog, but more than that, they’ve been able to maintain a blog successfully. I haven’t setup a blog like this before, and I’m not a computer genius. I’m excited to get involved with Yakezie and hopefully meet some people that can help me out as I figure this whole blogging thing out.

    It’ll help me stay focused.

    I did a little inadvertent self reflection the other day and I realized that I have a tendency to get really excited about a project and go all-in without thinking

    … Continue reading The Yakezie Challenge

    Welcome

    Welcome to Dividend Growth Investing & Retirement! If you’re new here, you can learn about me and why I started this blog.

    It’s my hope that I can help my readers to a life of financial independence, by providing Dividend Stock Analysis’ and the Canadian Dividend All-Star List.

    I’m still in the process of setting up my blog, so if you are one of the few people who have discovered my blog, please be patient as I update the blog. It’s my hope to have the blog fully up and running by the middle of February.