Below are the 5 blue-chip dividend stocks hedge funds are buying. For a comprehensive list see 10 Blue Chip Dividend Stocks Hedge Funds are Buying.
5. McDonald’s Corporation (NYSE: MCD)
Fast Food chain McDonald’s Corporation (NYSE: MCD) was in 65 hedge fund portfolios at the end of the September quarter. Hedge funds are buying McDonald’s amid its dividend growth potential along with prospects for steady share price gain.
McDonald’s Corporation has raised dividends in the past 19 consecutive years and its average dividend growth rate stood around 8%. The company currently offers a quarterly dividend of $1.29 per share, which is equivalent to $5.16 annually. The strong business model and brand recognition have been helping in generating robust financial numbers. Its third-quarter comparable sales fell 2% year over year despite lockdowns and social distancing policies.
“Our third-quarter performance demonstrates the underlying resilience of the McDonald’s (MCD) brand. Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic. Our prior investments in these areas position us to further our competitive advantage and enable restaurant crew to continue to safely provide customers our great tasting food,” said McDonald’s President and Chief Executive Officer Chris Kempczinski.