John,
Both INTC and MSFT has run up nearly 23% this year, this cannot continue for much longer. The S&P has gained over 6, the market will not gain over 70 for the year. We're not Korea or Russia.
In the same light, large yielders like T, MO, and F are out of favor now, but their large dividends are what institutions like during market retreats and consolidation periods. In the case of MCD, it's just the game of probability at work. It's been out of favor since March of 96, can this market leader languish forever, I don't think so. At current prices with its international grwoth prospects, MCD is a compelling buy here.
TMO does not pay a dividend, but it's got $1.7+ billion in cash to buy shares if they get unfairly depressed. TMO can also invest in new 'home-grown' businesses, something it has successfully done for decades. |
