Posted on | July 22, 2011 | Comments Off
A few updates on the dividend portfolio on this Friday, July 22nd, 2011.
First up a major change on the dividend portfolio. We’re removing Chimera (CIM) from the dividend potfolio. Chimera was always a unique position in the portfolio and geared more towards high yield in the short term. As my time is becoming strained, it is hard to keep on the inner workings on Chimera (more so than other companies because of its business); as such, we’re going ahead and removing the company from the portfolio.
Next, there is some good news for Walmart (WMT) coming out of India. India is moving closer to relaxing its rules on foreign investment in the retail sector. Previously, India has limited foreign investment into multi-brand retail stores. This has been done to prevent the local retail stores from getting hurt, but the trend is definitely moving in Walmart’s favor. India is a massive market and represents a great opportunity for multinational retail giants like Walmart. You can read more on the update here and more on Walmart’s India operations in general here.
Lastly, McDonald’s (MCD) just delivered a huge quarter with US same store sales up 6.9% – overall profit grew 15%. This is a huge number and McDonald’s is actually growing market share in a contracting environment. McCafe coffee sales are a big hit. Shares are up several percentage points and are hitting new highs. McDonald’s frankly continues to outperform and I don’t know when a pull back will materialize.