So I was looking at McDonalds (MCD) this morning... and I did my usual look back at the chart and dividend etc.
The reason I'm writing about it this morning is because of our recent housing discussion. Which brought up a couple of key points I was trying to get people to at least think about.
Since 2008 MCD has DOUBLED it's dividend from .38 per share to .70 per share... and while doing that it also grew in price by 68%
Since 1990 it has price growth of 971%
How's your house done since then??
Which one of these investments would help you retire? 100K invested in your house or
10K invested in 1990 in McDonalds?
In 1990 a share of MCD was 7.00 and paid .02 dividend... it has split 2 for 1 twice since then so for every one share you bought you now have 4....
10K / 7.00 = 1428 shares -- now after splits = 5700 shares paying .70 per quarter or annually $16K.... Monthly that is $1300
AND I'M NOT CALCULATING REINVESTED DIVIDENDS --- I'm just doing the bare minimum net math - and that you've taken the cash dividend and pissed it away -- OR maybe you used it to pay down your house each quarter? LOL
Figure the extra 100K in your home equity would have saved you maybe $400 or 500 a month now? I don't want to do all the math -- I'm just putting this out there for "thinking" purposes... not a detailed breakdown of which is better etc just LOOK at it is all I'm saying. One is an investment that is now real NET WORTH and CASH FLOW one is just where you live. My thinking is that $1300 a month now is looking pretty good.
Oh -- yeah -- and your 10K investment is now worth 500K
