McDonald’s earnings jumped a strong 19% a beat estimates in the most recent period. Revenue rose 10% to $5.67 billion, also topping forecasts. In addition, same-store sales, which is a huge metric for the company, jumped 11.8%. While that number represented a big drop from prior quarters, it was much better than gloomy Wall Street expectations. U.S. comparison rose 3.5%, barely eclipsing the consensus target.
Shareholders receive a 2.36% dividend. UBS has a Wall Street leading $290 target price on McDonald’s stock. The consensus target is $278.75, and the most recent close was at $234.28.
Procter & Gamble
The company offers a very solid dividend as well as a host of recognizable products. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn. Some of these are among the most valuable brands in the world.
The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.
The dividend yield is 2.76%. The Jefferies price objective is $185, while the consensus target is $165.15. Procter & Gamble stock closed at $132.36.
These seven stocks have reasonable upside to the Wall Street targets, and they all come with very dependable dividends, given their Dividend Aristocrat status. With even moderate appreciation in the share prices of these top companies, investors should be looking at double-digit total return potential. In a market that is very volatile, and that could be headed much lower if we are already in a recession, these safe stocks make a ton of sense now.
Originally posted at 24/7 Wall St.
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