Top Dividend Stocks #7: McDonald’s (MCD)
Dividend Yield: 3.36%
YTD Performance: -0.6%
52-Week Return: +5.77%
For a long time, McDonald’s (MCD) was a go-to choice for many fast-food consumers. But in recent years, the competition from restaurants that put an emphasis on serving healthier food, such as Chipotle Mexican Grill (CMG) and Panera Bread (PNRA), has translated into weaker same-store sales for MCD.
This is evident in the performance of each company’s share price. While MCD is essentially flat for the year, CMG is up 3.4% in that time and PNRA is up 4.2%. Moreover, rivals Burger King (BKW) and Wendy’s (WEN) are each sporting YTD gains of roughly 14%.
The one thing that separates McDonald’s from the pack, however, is its dividend. The current annual payout of $3.24 per share makes for a solid 3.36% yield. Its competitors’ dividend yields are relatively small by comparison — even nonexistent in the cases of Chipotle and Panera.