U.S. markets have defied pessimism over the conflict in the Middle East and inflationary pressure arising from higher energy prices, and are trading near their all-time highs. However, the tide hasn’t lifted all boats, and McDonald’s Corp (MCD) is trading near its 52-week lows, underperforming the markets by a wide margin.
Meanwhile, McDonald’s is a dividend aristocrat and has increased the payouts for nearly five decades. Moreover, given the disconnect between its dividends and price action, the stock’s dividend yield has risen to around 2.7%, which is over twice what the average S&P 500 index ($SPX) constituent pays. But is MCD a “Buy,” particularly for investors looking for dividend stocks?
