This morning I noticed that the stock market was set to sell off early so I set up a limit order for 25 shares of McDonald's $87.76. I was debating on what price to set my limit order at but chose the $87.76 mark instead of $87.51 because $87.76 is still well under my fair value for McDonald's to trade for. As it turns out McDonald's sold off to $87.32 at one point so I could have purchased them for a little cheaper, but in the long run it won't make that big of a difference.
McDonald's recently beat on revenue in their latest quarterly earnings announcement but missed on profit. The biggest driver for an investment is the revenue growth since that triggers growth in everything else, including the dividend. I posted my stock analysis on McDonald's back in May and while it's currently a little out of date it is still relevant because nothing fundamentally has changed with the company. I will update it early next year after McDonald's closes out their fiscal year.
Now on to the details of the purchase. I purchased 25 shares for a price of $87.76 per share. Based on the recent quarterly dividend increase to $0.77 per share my YOC for the shares is 3.50%. These shares will bring an additional $77 in annual dividend payments before further increases or reinvestment. Since the next ex-div date is in late November I'll be receiving one quarterly payment of $19.25 from my new purchase this year. My YOC for my whole position in McDonald's increased from 3.44% to 3.46% while my YOC for my FI portfolio increased from 2.79% to 2.83%. Forward 12-month dividends are now at $1,231.08. It's great to see the progress that I've made so far this year. I've increased my forward 12-month dividends almost threefold throughout the 2012 so far and I still have plenty more capital to get to put to work.