5 Best Blue Chip Dividend Stocks to Buy Now

4. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 91

Dividend Yield as of May 12: 2.71%

McDonald’s Corporation (NYSE:MCD) is the world’s leading global foodservice retailer with over 37,000 locations in over 100 countries.

On May 9, RBC Capital analyst Logan Reich lowered the firm’s price target on McDonald’s Corporation (NYSE:MCD) from $330 to $305, while maintaining a ‘Sector Perform’ rating on the shares. The trimmed target still reflects an upside potential of over 11% from the current levels.

The move comes after McDonald’s Corporation (NYSE:MCD) exceeded both profit and revenue estimates in its Q1 report on May 7. The company’s global comparable sales rose by 3.8%, compared to a 1% decline reported last year.

RBC Capital noted that McDonald’s Q1 results were strong relative to modest expectations, noting that the company gained market share among low-income consumers in the United States. However, the analyst warned that the foodservice retailer remains vulnerable to broader macroeconomic pressures.

McDonald’s Corporation (NYSE:MCD) CFO, Ian Borden, flagged a weaker start to Q2 due to the soaring fuel prices putting persistent pressure on low-income consumers and turning sales slightly negative in April. However, the company reaffirmed its full-year 2026 financial targets and reiterated its plan to expand to about 50,000 restaurants by the end of 2027.