Is McDonald’s Corporation (NYSE:MCD) A Strong Consumer Dividend Aristocrat Stock To Consider?
We recently compiled the list of 25 Best Dividend Aristocrats Stocks According to Analysts. Since McDonald’s Corporation (NYSE:MCD) is part of our list, we have analyzed the stock in detail. The age-old debate of investing in dividend growth or high-yield stocks continues to reappear within the dividend investing realm. Between these two, dividend growth is currently the favored option in the market as investors seek out strategies to grow their income over time.
In this regard, investors turn to dividend aristocrats, which are the companies that have raised their payouts for 25 consecutive years or more. These stocks have delivered strong returns over the years regardless of market conditions. Numerous analysts have pointed out the long-term potential of dividend growth stocks, a sentiment echoed by Warren Buffett’s investment in Coca-Cola.
With investors showing a growing preference for dividend-paying stocks, major tech companies started initiating their dividend policies this year. Companies across the broader market are also showing a strong commitment to dividends in 2024. According to a recent report by S&P Dow Jones Indices, companies in the index paid $151.6 billion in dividends in the first quarter of 2024.
McDonald’s Corporation (NYSE:MCD) is next on our list of the best dividend aristocrat stocks. The company’s quarterly dividend currently stands at $1.67 per share and its stock has a dividend yield of 2.5%. It holds a 47-year track record of consistent dividend growth. McDonald’s Corporation (NYSE:MCD)’s revenue has remained consistent over the years because of the company’s franchise business model and global spread.
Despite challenges faced by McDonald’s Corporation (NYSE:MCD) due to lower-income households reducing their spending and switching to eating at home, the company remains one of the largest fast-food restaurant operators in the world and one of the best fast food stocks to buy according to analysts.
According to our records, 63 hedge funds held shares of McDonald’s Corporation (NYSE:MCD) with a total value of $2.3 billion, as of the end of March. Citadel Investment Group is the largest shareholder among the funds tracked by Insider Monkey. Overall, MCD ranks 13th among the best dividend aristocrat stocks according to analysts.
While we acknowledge the potential of dividend growth stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks. Disclosure: None. This article is originally published at Insider Monkey.