#5: McDonald’s (MCD)
McDonald’s (MCD) got off to a great start early this year, rising almost 15% through mid-April. But the fast-food behemoth started making a series of lower lows halfway through the year after two disappointing earnings reports hit the tape just below Wall Street estimates.
MCD is up just 9% for the year now, and down 5% since the last time it was featured on our list. If there’s a silver lining to that poor performance, it’s that the $3.24 annual dividend makes for a very hefty 3.4% yield.
The current valuation is only slightly greater its own five-year average forward P/E, which makes the stock a decent bargain.
Despite Mickey D’s less-than-stellar returns for the year, the company has made up for its failings through stock buybacks and by offering investors steadily increasing payouts. All that translates to what should be seen as an attractive opportunity to own one of the world’s most recognizable brands.