#3 - McDonald’s (NYSE:MCD)
Some investors avoid consumer discretionary stocks, like restaurants, in a bear market. The belief is that as consumers begin to tighten their belts, they’ll eat at home more. McDonald’s (NYSE:MCD) punched a hole in that theory during the pandemic and continues to deliver strong revenue and earnings even as inflation rises and the outlook for the economy becomes more pessimistic.
The reason for these strong results comes from McDonald’s investing in its digital business before the pandemic. That investment is paying dividends (no pun intended). The company is operating with in-store kiosks and mobile ordering that complements a brisk and increasingly efficient drive-thru business. An expectation of strong consumer demand should allow MCD stock to support a somewhat lofty valuation.
The company’s dividend currently pays out $5.52 per share on an annual basis and is growing at an annual rate of around 7.8%. With earnings growing at a steady pace, investors can count on a growing dividend for years to come.
About McDonald's
McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.
Read More - Current Price
- $272.38
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 20 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $317.74 (16.7% Upside)
