Exxon Mobil Corporation (XOM), McDonald’s Corporation (MCD): Be Scared?

Fast Food Giant

McDonald’s Corporation (NYSE:MCD) shares aren’t exactly cheap. However, the yielded was recently around 3%, the company has a long history of dividend increases, and the stock has a very low beta. Beta is a measure of risk relative to the broader market, with lower numbers suggesting lower risk. Although the stock would likely take a hit if the stock market fell, the low beta suggests that McDonald’s Corporation (NYSE:MCD)’s drop will be less pronounced.

It’s also comforting to own a business that spans almost 120 countries with more than 30,000 locations. Moreover, it is a leader in just about every market it’s in. Add to the list that it sells reasonably and cheaply priced food, and the story is even more compelling.

Results have been relatively weak of late because of stiff competition in mature markets and some unique situations in key growth areas, like the chicken issues in China. That said, McDonald’s Corporation (NYSE:MCD)’s has proven time and again that it deserves its spot atop the food chain. Those concerned about a drop would do well to take a look.

A Little Gold

Gold might seem an odd suggestion, but if the world is going to hell in a hand basket, it might be a good idea to have a little gold exposure. Newmont Mining Corp (NYSE:NEM) is among the world’s largest gold miners. The big drop in gold prices is a concern, but many high profile investors (Jim Rogers, for example), still think gold has a solid future.

The company has some issues right now, like older mines and execution risk associated with new projects, but it also sports an impressive dividend yield of around 4%. Gold’s price drop could result in a dividend cut since the disbursement is tied to gold prices, but that doesn’t change the benefit of including a small amount of exposure to this asset class. Moreover, if gold prices do head higher on a market sell off, any dividend cut would likely be reversed.

A Scary Time

It’s a scary time to be an investor. If you are looking for dividend income, though, you have to be in the market. The three stocks above are ideas that may help keep risk in check while keeping your dividend income up.

The article Central Banks Buying Stocks, Look Out Below! originally appeared on Fool.com and is written by Reuben Brewer.

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