#3 - McDonald’s (NYSE:MCD)
Continuing with our theme of defensive stocks brings us to McDonald’s (NYSE:MCD). During the pandemic, McDonald’s proved that its investment in digital paid off. The company continued to deliver strong results during the pandemic. And now the fast-food giant is delivering YOY beats on earnings and revenue that go back to before the pandemic.
This is reflected in the company’s FCF that increased by 53% in 2021. Not only does this make it likely that McDonald’s will make it 47 consecutive years of dividend increases later this year. And keep in mind that the company already pays out a rich dividend that currently amounts to $5.52 per share on an annual basis. It may also offset investor concerns that the company will be under increasing cost pressure with rising wages and its continuing investment in automation.
For what it’s worth, analysts give MCD stock a 12% upside with a consensus price target of $281.74.
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)
