5 High Sharpe Ratio Dividend Stocks in the S&P 500

2. McDonald’s Corporation (NYSE: MCD)

Number of Hedge Fund Holders: 66
Dividend Yield: 2.18%
Sharpe Ratio: 1.4

McDonald’s Corporation (NYSE: MCD), an American fast-food chain, is next on our list of high Sharpe ratio dividend stocks in the S&P 500. The company offers food products and beverages at its restaurants across the globe. It ranks 2nd on our list.

This July, Christopher Carril, an analyst at RBC Capital, raised his price target on shares of McDonald’s Corporation (NYSE: MCD) from $263 to $268. The analyst also reiterated an Outperform rating on McDonald’s Corporation (NYSE: MCD) shares.

In the second quarter of 2021, McDonald’s Corporation (NYSE: MCD) had an EPS of $2.37, beating estimates by $0.25. The company’s revenue was $5.89 billion, up 56.53% year over year and beating estimates by $319.30 million. McDonald’s Corporation (NYSE: MCD) has gained 13.78% in the past 6 months and 12.72% year to date.

By the end of the second quarter of 2021, 66 hedge funds out of the 873 tracked by Insider Monkey held stakes in McDonald’s Corporation (NYSE: MCD) worth roughly $2.7 billion. This is compared to 67 hedge funds in the previous quarter with a total stake value of approximately $3.8 billion.