#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 Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.
More about McDonald's- Current Price
- $299.68
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $323.30 (7.9% Upside)
