Wednesday, April 19, 2017

Recent sell - MCD

Yesterday I sold my position in MCD.


I've been wanting to sell this position for a while now.
Most importantly, because it does not fit the 10x10 rule anymore.
Basically this means the balance between the yield and the growth is not optimal.

Apart from that, the current P/E ratio (24) and the payout ratio (69%) are too high for my taste.


Let's see what happened during my time as a shareholder of MCD.

08/25/14 - Bought 11 shares at $94.77 for $1042.47
2014 Dividends received - $7.95
2015 Dividends received - $32.16
05/19/16 - Sold 6 shares at $124.99 for $749.94
2016 Dividends received - $19.88
2017 Dividends received - $3.99
04/18/17 - Sold 5 shares at $132.68 for $663.40
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Net profit: $429.85 (41%)

Any thoughts?
Are you concerned about MCD as well?

Thanks for reading!
Geplaatst door op
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9 comments:

  1. DivHutApril 19, 2017 at 11:32 PM

    Nice run you had with MCD. A gain of 41% in a relative short time is pretty good. That being said, I'm sticking with my MCD for the foreseeable future. While dividend growth has slowed its stock price continued to climb. I would like to add to my MCD, in fact, but not at current levels. Thanks for sharing.

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    Replies
    1. Dividend for StartersApril 21, 2017 at 12:17 PM

      Hi Keith,

      Thanks for your continued support!

      It was a pretty tough call, as dividends were great and might continue to be great. We will have to wait and see what happens.

      Delete
  2. captain dividendApril 20, 2017 at 12:26 AM

    As a fellow MCD shareholder I hate to see you go. That 10 x 10 rule is a tough rule to follow these days. I wouldn't own many stocks at all if I followed that religiously. Grats on a fantastic net profit though.

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    Replies
    1. Dividend for StartersApril 21, 2017 at 12:21 PM

      Hi CD,

      It is a tough rule to follow, but then again, 17 of my 24 current investments do meet the requirements! I'd like to think I will be able to find a suitable replacements, but there are not dozens of examples to pick from these days.

      Thanks for sharing!

      Delete
  3. Dividend DiplomatsApril 20, 2017 at 1:39 AM

    D4S -

    Thanks for sharing and solid returns. I drove by about 15+ MCDs over the last 2 days on my client road trip and let me say - those lines were out to the streets and the lines inside were no different : ) I'll be holding on!

    -Lanny

    ReplyDelete
  4. UnknownApril 27, 2017 at 4:17 PM

    Nice profit on MCD. I sold of MCD too soon but I was able to get some decent gains as well.

    ReplyDelete
  5. WillemJune 18, 2017 at 10:50 AM

    Hi dvd, when will you post again?
    long time not seen, I am always interesting to follow your blog.

    regards
    Willem

    ReplyDelete
    Replies
    1. Dividend for StartersJune 20, 2017 at 10:53 PM

      Thanks Willem!

      I plan to post more regular soon again!
      Exactly one year ago, at June 2016, I crashed pretty badly with my car on the highway. Fortunately I was okay but I had to buy a new car.

      During last year I had to max out my emergency fund again, meaaning I didn't have any money left to invest. That's why the recent updates have been very irregular to say the least.

      Will update soon!
      Thanks for you patience.
      DfS

      Delete
  6. Captain DividendJune 24, 2017 at 9:04 PM

    You had a nice tidy profit there with MCD. Gonna hold on to my MCD shares. The last time I sold a position I made money on it but the stock has gone up another 10% since then. Ouch. I'm not a good timer, that's why I just hold most of the time. Thanks for the update

    ReplyDelete

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