McDonald's Corp (MCD) stock looks undervalued. The dividend yield is 2.44%, well over its historical average, giving it at least an 11% upside. Moreover, selling short out-of-the-money (OTM put options can bring extra income for value investors. This can help pay for long-dated calls (over one year away in expiration), to benefit from the upside in MCD stock.
MCD is trading for $289.56 in midday trading on Dec. 31, 2024. This is well off its recent high of $316.56 on Oct. 18. However, it could be worth over 11% more at $321.82.
