@dude3737- KO and MCD are beast companies. Truly world-class business models, great brands that self-adjust for inflation, leverage other peoples money (KO in terms of bottlers and MCD for franchisees), and have a long track-record of performance. They also increase dividends every year.
My thoughts are to buy KO and MCD as a "quasi-bond". At 20 and 17 P/E, its basically like buying a bond that yields 5-5.8% interest and self-adjusts for inflation. Dividends payouts (real money in pocket) is 2.9% (KO) and 3.45% (MCD). Every year they historically pay-out half their earning in dividends and increase dividends regularly.
If you count it this way, its a much better store of value than precious metals as an inflation hedge. I'd venture a guess that if you factored in stock prices of said companies + dividends it would crush gold/silver.
My thoughts are to buy KO and MCD as a "quasi-bond". At 20 and 17 P/E, its basically like buying a bond that yields 5-5.8% interest and self-adjusts for inflation. Dividends payouts (real money in pocket) is 2.9% (KO) and 3.45% (MCD). Every year they historically pay-out half their earning in dividends and increase dividends regularly.
If you count it this way, its a much better store of value than precious metals as an inflation hedge. I'd venture a guess that if you factored in stock prices of said companies + dividends it would crush gold/silver.
WIA- For most of men, our time being masters of our own fate, kings in our own castles is short. Even those of us in the game will eventually succumb to ease of servitude rather than deal with the malaise of solitude