There are 51 companies in the S&P 500 that have increased their dividends for at least 25 consecutive years. This dividend aristocrats list holds many household names, but only one restaurant, McDonald’s (MCD). The restaurant business is notoriously difficult, but some industry companies could eventually join the ranks of dividend aristocrats.
For clients who seek individual stocks that will provide growing income, here are some things to look for: First, of course, is that the restaurant company pays a dividend (many don’t). Second, the company should have already started increasing its dividend annually. Third, and most important, the company should display solid growth in free cash flow.
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