Dividend‑yield theory has always resonated with us because it strips investing down to a simple truth: dividends are harder to manipulate than earnings. Geraldine Weiss built an entire framework around this idea in Dividends Don’t Lie, showing how yield can reveal when a blue‑chip stock is mispriced.
We turns to McDonald's which has underperformed the market for few years and have traded in flat line in about 5 years. The stock has fallen 4% in 5 years. During the same period, dividend increase 35%. Consistently rising dividends are the most reliable long-term catalyst for rising stock prices in quality companies.
Although McDonald’s dividend yield hasn’t reached its historical upper band, the current trend suggests it’s a stock worth monitoring for long‑term accumulation.
