Dividend Yield: 3.1%
Another king of its field — this time, fast food — McDonald’s (NYSE:MCD) has provided investors with an annual dividend increase for 37 years.
There’s no reason to believe the next 37 years will be any different.
To be sure, their have been some stumbles, as same-store sales slowed late last year amid what appeared to be concerns over McDonald’s food offerings, which were considered generally unhealthy. But MCD historically has been a master innovator, and already the trend is turning — menus are now packed with healthy offerings like salads and fruit smoothies, and the company continues to tweak both its offerings and its store models around the world.
MCD generates a healthy $1 billion per year in free cash flow and boasts a cash stash of almost $2.3 billion — more than enough to power dividend increases for a very, very long time. Meanwhile, its current yield is already plenty juicy at 3.1% — and that’s with stock prices near all-time highs.