10 Best Blue Chip Dividend Stocks To Buy

7. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 63

McDonald’s Corporation (NYSE:MCD) is an Illinois-based fast-food restaurant company. It posted strong earnings in the first quarter of 2024, reporting revenue of $6.17 billion, showing a 4.60% growth from the same period last year. The company has achieved positive comparable sales growth for 13 consecutive quarters, with a notable 30% increase over the past four years. Global comparable sales rose by 2% in the most recent quarter, driven by positive comparable sales in both the US and International Operated Market Segments.

Earlier this year, McDonald’s Corporation (NYSE:MCD) stock reached its highest-ever trading level at around $300 per share. However, concerns among investors about broader macroeconomic factors, inflation, and geopolitical tensions, have emerged as potential risks, signaling potential challenges ahead for the company’s performance. However, the company has consistently surprised its investors over the years. Despite encountering various challenges in the past, it has consistently rebounded and strengthened its operations. Not to forget the Great Financial Crisis of 2007, during which the stock delivered nearly a 36% return between July 2007 and July 2010.

These short-term headwinds were also noted by Carillon Tower Advisers in its Q1 2024 investor letter. Here is what the firm has to say about MCD:

“McDonald’s Corporation (NYSE:MCD) faces several short-term headwinds. Lower-income consumers have been cautious with spending, as they are feeling the cumulative effects of inflation more than higher-income cohorts. As the low cost/ value player in fast food, McDonald’s has a customer base that skews lower income. Also, as an international company, McDonald’s is feeling negative effects from war and tensions in the Middle East, as well as softness in China.”

McDonald’s Corporation (NYSE:MCD) intends to maintain its expansion trajectory, aiming to reach 50,000 restaurants by 2027, up from its current count of over 40,000 locations.

McDonald’s Corporation (NYSE:MCD) currently offers a quarterly dividend of $1.67 per share for a dividend yield of 2.66%, as of July 7. It is one of the best dividend stocks on our list as the company has been growing its payouts for 47 consecutive years. The company remained committed to its shareholder returns over the years. In 2023, it returned $7.6 billion to investors through dividends and share repurchases.

Insider Monkey’s database of Q1 2024 indicated that 63 hedge funds held stakes in McDonald’s Corporation (NYSE:MCD), the same as in the previous quarter. These stakes have a total value of nearly $2.3 billion.