Summary
You, like most people, have certainly fantasized of investing in a firm whose stock soars in value, allowing you to retire early and enjoy a comfortable lifestyle. If you were looking for a growth company to invest in, McDonald’s stock may have been high on your list.
While investing may seem tricky at first, there are steps you can do to simplify the process. The elimination of stock commissions on many free stock trading platforms has made investing easier and more accessible to more people. That is to say, you can buy shares without incurring any additional transaction fees.
The barrier to entry for investing in growth stocks is further lowered by the availability of apps that enable regular savings for the purchase of fractional shares. When considering how to buy McDonald’s shares, it’s pertinent to do your due diligence and consider its stock performance and past dividends. The first and foremost thing to look for in a broker to buy shares is if it offers access to NASDAQ. Furthermore, check the broker’s trading platforms, commission and fees, regulation and if leverage is available. You may also want to check out your investment goals and risk tolerance. This guide will give you a run-through on all the factors and things you need to know to buy shares in McDonald’s.
Want to own a slice of the world’s most recognizable fast food brand? Here’s how to buy McDonald’s shares in easy and simple steps:
- Select an Online Stock broker
- Create a Brokerage Account
- Deposit Funds
- Buy McDonald’s Shares
- Manage your McDonalds Positions
Just like every investment, buying shares also comes with its pros and cons. Before you supersize your holdings, let’s take a look at the pros and cons of buying shares in McDonald’s.
Pros
- Positive Consensus.
- Dividend Yielding.
- Diverse Revenue Streams
Cons
- Vulnerable to Consumer Trends
- High Share Price
- Ongoing Legal and Regulatory Challenges
If you’re considering buying McDonald’s shares, it’s pertinent to consider a few factors before deciding. From the company’s financial performance to its competitive landscape, there’s much to consider when weighing the potential benefits and risks. Don’t worry; investing in McDonald’s stocks can be a delicious opportunity for those who want to see their investment grow. Let’s take a closer look.
Commissions & Fees
Given that they vary with the trader’s activity level, commissions have the potential to be one of the most costly aspects of trading. This means that the more you trade, the more you’ll have to pay, which can mount up quickly. This is normally the most expensive part of the scenario. However, some brokers, such as eToro and Capital.com, do not levy any commission on stock trades, significantly lowering your overall costs. Besides fees, traders may incur handling costs on shares, trading and non trading fees – discussed later in the article.
Stock Broker’s Regulation
Traders and investors worldwide can buy McDonald’s shares through online brokerage firms. Allowing clients to buy international shares no matter where they are, these brokers offer shares from multiple global exchanges. For the safety of customers’ money in the face of fraud or insolvency, authorities implement regulations to guarantee compliance with industry norms. To stay safe, choose platforms that are regulated by top tier regulatory authorities. Look for the relevant regulation if the brokerage firms are active in several jurisdictions. The following are some of the top regulatory bodies:
- Australian Securities and Investment Commission (ASIC) in Australia,
- The Financial Conduct Authority (FCA) in the United Kingdom,
- Financial Sector Conduct Authority (FSCA) in South Africa,
- The Monetary Authority of Singapore (MSA) in Singapore, and
- Cyprus Securities and Exchange Commission (CySEC) in Cyprus.
Trading Platforms
Another factor to look at when considering how to buy McDonald’s shares is the type of trading platforms offered by brokers. Lots of stock brokers have innovative trading platforms and apps that are super helpful if you want to sell or buy stocks. If you want to play it safe, go for a broker with their own trading platform and support popular ones like MT4 or MT5.
A trading platform custom-built by the broker is way more likely to be user-friendly as it helps users be more adaptable when the market is fluctuating. Plus, it was developed with the users’ needs in mind. Furthermore, these platforms are often available on the web, desktop, and mobile apps. To hook up their customers with the best service and make things super easy for them, the finest brokers make their trading platforms accessible via all three methods. If you pick a broker with versatile trading platforms, you can use many features like live market data and fancy charts to improve your trading experience and increase your chances of success in the stock market.
Leverage Availability
Leverage refers to the ability to trade a larger position than the capital you have in your trading account. It not only allows traders to amplify their potential profits from trading, but it may also increase the potential risk of loss. Stocks traded with leverage are called stock CFDS. Mostly for retail clients, online platforms offer leverage from 1:2 to 1:10 – depending upon the jurisdiction they are operating. For instance, retail clients of eToro’s EU, AU, and UK branches can use leverage up to 1:5 to trade stocks and ETFs offered as CFDs and up to 1:10 for clients of eToro (Seychelles) Ltd. When considering how to buy McDonald’s shares CFDs, you should also consider available leverage. Likewise, Capital.com offers 1:5 leverage on trading stock CFDs to its global retail clients.
McDonald’s (MCD) Stock Performance
McDonald’s stock performance is sizzling, offering that mouth-watering, delicious blend of brand recognition, digital innovation, and steady dividends. Like any stock, its performance can be affected by many different things.
As its stock price has been mostly going up in the last five years, there have been some ups and downs. On May 6, 2019, the stock was trading at about $198.90 per share. So, by May 5, 2023, the stock was up to about $296.60 per share, an increase of 49% over five years.
The firm has had good revenue growth and made over $23.183 billion in 2022. The company’s financial results have been booming thanks to their killer menu ideas, digital upgrades, and keeping costs low. Regardless of setbacks like the drop in sales caused by the COVID-19 epidemic, McDonald’s has proven its endurance and capacity to adapt to new circumstances.
McDonald’s (MCD) Past Dividends
McDonald’s is a well-known corporation that consistently pays out dividends to shareholders. To qualify as a Dividend Aristocrat, a company must have increased its dividend payment to shareholders for at least 25 years in a row.
If you want to generate money now while employing a buy-and-hold strategy, that may be of interest to you. McDonald’s is neither a growth stock per se nor is it typically seen as a value stock. The company’s finances are sound, and it has extensive expansion plans that could pay out much more in the long run.
The last ex-dividend date for the corporation was February 27, 2023. On March 14, 2023, McDonald’s shareholders who owned MCD shares before this date received the company’s final dividend payment of $1.52 per share. Additionally, the company paid $-4.168 billion in annual common stock dividends in 2022, a 6.37% increase from 2021. The firm paid $-3.919 billion in 2021, a 4.42% rise from 2020, and $-3.753 billion in 2020, a 4.77% increase from 2019.
If you’re seeking to buy shares in McDonald’s, you can do so through proprietary or third-party platforms provided by online brokers. Brokers’ trading platforms come with a variety of features that can enhance your trading experience. Did you know that online brokers offer tailored trading platforms for both desktop and mobile devices? These platforms work seamlessly on both desktop and mobile devices, making trading a breeze!
Desktop Trading Platforms
To facilitate trading, online brokerages provide clients with customized proprietary trading platforms or third party platforms. For example, eToro provides its international clientele access to its powerful in-house web-based trading platform, so they can employ numerous trading tactics while trading MCD shares. With its sophisticated tools, users may easily create and implement a wide range of stock trading strategies.
Traders can also buy McDonald’s shares through Capital.com, which provides its customers with a complete online trading and investment platform. Capital.com’s proprietary platform allows users to select from more than seventy-five (75) different technical indicators and customize charts to their liking. Due to their lightning-fast execution, brokers often provide access to third-party trading platforms like MT5 & MT4, alongside their proprietary platform.
More importantly, newcomers find the interface very welcoming since, they say, it provides them with quick access to a wealth of asset-related data, such as the current price, without having to dig around. Online trading and the full range of trading instruments make this platform competitive for investors worldwide.
Mobile Apps
Some traders like using their big, powerful PC for trading, while others prefer trading on their mobile phones when they’re out and about. That being said, most online brokers hook you up with mobile trading apps so you can trade on the go without any hassle. Capital.com offers a futuristic and user-friendly mobile app with technical analysis, price alerts, charts, indicators, and order limits to make buying shares straightforward. Likewise, eToro offers its modern and cutting-edge mobile trading app to its users globally.
For mobile trading on alternative platforms like MT5, many brokers now offer downloadable apps. These mobile apps provide a great trading experience with smooth and easy-to-use features. You’ll find detailed technical analysis, insights on market movements, and various order types.
Before taking a big bite out of the Mcdonald’s stock, make sure to peel back the layers and check your broker’s fee schedule. As with any investment, buying shares in McDonald’s may include fees and transaction costs. Client expenses can be divided into two categories – trading and non-trading fees. Let’s explore the two.
Trading Fees
Overnight/rollover/swap fee, spreads, and commission are just some trading costs investors/ traders incur when buying MCD stocks. Brokers charge swap fees for keeping a trade open overnight, with the amount varying by broker and trade size. The spread between the share’s bid and ask price is a factor in the final transaction cost. In addition, brokerage firms may tack on an additional commission for buying shares, typically amounting to about 1%.
Non-Trading Fees
When you buy McDonald’s shares, brokers can sneak in non-trading fees with trading fees. These fees might include:
Inactivity Fee: Some brokerage firms might charge you an inactivity fee if you don’t make any trades for a while. The fee might change depending on the broker and the kind of account you got.
Share Handling Fee: The share-handling/custody fee is something that some brokers add to their clients’ bills for handling and management of shares.
Withdrawal Fees: Some brokers may charge you for taking your money out of your account. The fee might change based on the broker and how you take out your cash.
Currency Exchange Fee: Just a heads up, if you’re trading McD’s shares in a different currency than your account’s base currency, you might get hit with a currency exchange fee. The broker or bank you use to swap the currencies might hit you with a fee for that.
Deposit Fee: Some brokerage firms might charge you a fee for depositing cash into your account. The fee might change based on the broker and how you deposit the funds.
About McDonald’s (MCD)
The American fast food chain, McDonald’s, is a market leader in the consumer cyclical sector. It is listed on the New York Stock Exchange (NYSE) under the ticker code MCD. McDonald’s stock is mostly traded on the NYSE, so you’ll need to find a brokerage with access to that exchange if you want to buy it.
As of now, McDonalds total number of shares outstanding are 731,300,000 and the Market cap of its shares is $215.48B. Stock splits and share buys back typically have an influence on the number of outstanding shares. As of writing, its share price is traded at $296.60 at a volume of 2,425,452.
Investing in McDonald’s shares is like making a yummy burger – you gotta think about all the stuff that goes in it! Just like how the stuff in a burger affects how good it tastes, there are a bunch of things that can affect how well McDonald’s stock does. The company’s financial performance, shifts in consumer tastes and preferences, the competition within the fast food business, macroeconomic factors such as inflation and unemployment, and regulatory shifts in areas such as labor and food safety all have a role.
While we’ve gone over the steps involved in buying MCD shares, it’s still a good idea to get a feel for what the community at large thinks before making the final decision. Below, you’ll find some helpful tips Reddit and Quora users provided about how to buy McDonald’s shares.
Founded in 2005, Reddit is a social networking website that allows users to discuss various topics and vote on the content they find interesting, to draw more attention to those they deem more important. Buying McDonald’s shares is a hot topic on Reddit, and we found various threads on it. Some people dislike its food and stocks, while others have positive views about its stocks.
In one of the threads, upon asking about their thoughts on McDonald’s shares in 2023, this particular user said that he owned MCD stocks through times when he thought it was about done for, but MCD always stood the time and found a way to improve. In his opinion, MCD stocks are something that you hold almost forever.
Quora
Quora, in contrast, adopts a question-and-answer model – you can post your questions and get answers from other users. Plus, you can even get feedback on how good those answers are. Quora users, like Reddit users, can vote up or down on certain answers. We found a few threads about how to buy shares in McDonald’s.
While searching through Quora, we found that this user is happy about his investment in McDonald’s. He stated that McDonald’s is paying a dividend yield of 2.44%. He added, if we look at its growth for the last ten years – it’s a dynamo.
Bottom Line
When assessing how to buy McDonald’s shares, the primary consideration is figuring out how much you can afford to invest and how well McDonald’s stock fits your financial goals. Having well-defined financial goals is always recommended.
If you want to minimize your trading costs, selecting a reliable and regulated brokerage with zero commission is also crucial. When investing in MickyD’s shares, checking its stock performance and past dividend is worthwhile. Before committing to them, we’d want to stress the importance of researching a broker’s regulations, services, platforms, fees, and commissions. Different options are available for you, such as desktop apps, web-based apps, and mobile apps. It all depends on your personal preference.
With any luck, you’ve learned enough about McDonald’s and its stock performance to make an informed investment decision after reading this article.
Q & A
McDonald’s, officially known as McDonald’s Corporation, is a fast food restaurant business based in the United States. Headquartered in Chicago, it’s one of the most famous names in advertising history with over 40,000 outlets worldwide.
In 1940, brothers Maurice (“Mac”) and Richard McDonald launched the first McDonald’s restaurant in San Bernardino, California.
McDonald’s was founded in 1940.
McDonald’s was made a public company in the IPO of April 21, 1965.
You can buy shares in MCD by following each of these steps:
· Select an Online Stock broker
· Create a Brokerage Account
· Deposit Funds
· Buy McDonald’s Shares
· Manage your McDonald’s Positions
There is no minimum limit on buying McDonald’s shares. In addition, you can also buy fractional shares if you find McDonald’s (MCD) shares expensive.
Yes, it can be traded as CFDs.
Yes, you can buy MCD shares on online brokers that have access to NASDAQ.
McDonald’s shares are listed on the New York Stock Exchange (NYSE).
The largest number of shares in McDonald’s is owned by The Vanguard Group Inc, which has an 8.81% stake in the company valued at $16,994,291,524, as of February 2023.
Yes, MCD shares pay dividends.
On May 6, 2019, the stock was trading at about $198.90 per share. And by May 5, 2023, the stock was up to about $296.60 per share, an increase of 49% over five years.
Yes, Blue chip stocks like McDonalds are a good buy for beginners.
With fractional shares, clients can invest as minimum amount as they like in McDonald’s shares. However, keep in mind there is a limit on minimum deposit allowed by brokers.
Depending upon the broker you are trading with, McDonald’s shares may or may not be commission free.
