5 Best Aristocrat Dividend Stocks to Buy

4. McDonald’s Corporation (NYSE: MCD)

Number of Hedge Fund Holders: 62
Dividend Yield: 2.23%

Fast-food giant McDonald’s Corporation (NYSE: MCD) ranks 4th in our list of the 10 best aristocrat dividend stocks to buy. The company was founded in 1940 and now operates nearly 40,000 McDonald’s in over 119 markets worldwide. Despite the pandemic, McDonald’s Corporation launched over 500 new restaurants in 2020. The company plans to open over 1,300 restaurants worldwide in 2021. The biggest fast-food chain in the world is also a dividend stalwart. The last time MCD increased its dividend was in October 2020, when it increased the quarterly payout by 3% to $1.29 per share. The fast-food chain has increased its annual dividend for 44 straight years and maintains a payout ratio of 73.33%.

The company has a market cap of $173 billion. The company’s revenue in the first quarter of 2021 came in at $5.13 billion, up 9% from $4.7 billion in the first quarter of 2020. Shares of MCD increased 26% over the past twelve months. On May 4, Telsey Advisory Group maintained its “outperform” rating on McDonald’s Corporation, with a $260 price target. 

At the end of the fourth quarter of 2020, 62 hedge funds in the database of Insider Monkey held stakes worth $1.37 billion in McDonald’s Corporation (NYSE: MCD). Peter Rathjens, Bruce Clarke, And John Campbell’s Arrowstreet Capital own 2,561,367 shares of the firm worth $574 million.