Personally, I’ve made a vow to myself that I won’t buy any stocks in 2011 that don’t pay at least some kind of dividend. And two of my favorite dividend stocks right now are McDonald’s (NYSE: MCD) and Invesco Mortgage Capital (NYSE: IVR), and I’ll tell you why. Since it’s impossible to know, in advance, exactly when the bloom will come off the rose, I recommend trying to collect as much of your return as you can up front. That means focusing on stocks that deliver a generous dividend here and now.
I’m especially keen right now on McDonald’s (NYSE: MCD). Some on the Street are pooh-poohing Mickey D’s in the belief that rising commodity prices will pinch the hamburger chain’s profit margins.Undoubtedly, that’s a near-term risk. But the naysayers forget that MCD has faced rising prices for bread, meat, vegetables and fuel for most of the past decade. Sooner or later, McDonald’s has always managed to pass costs through to the customer. Why should it be any different now? At Tuesday’s close, MCD is yielding 3.3%. Put another way, a dollar invested in the Golden Arches will churn out 75% more income, immediately, than a buck placed in the S&P 500 index. I’ll go with Ronald McDonald, thank you! Pay up to $77.
Source: InvestorPlace
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From a chart standpoint, it appears that IVR is way overbought. Do you ever use charts as a tool in conjunction with the dividend rate etc. Also, I did not see that you follow this on your premium content. Thanks.