Dividend Stock Portfolio For Income: Top 10 Stocks to Buy

7. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 67

McDonald’s Corporation (NYSE:MCD) is an American multinational fast food chain. The company’s latest quarterly earnings fell short of investor expectations. It posted a revenue of $6.4 billion in the fourth quarter of 2024, down 0.2% from the same period last year. The revenue also missed analysts’ estimates by over $88 million. The company reported a modest 0.4% increase in same-store sales worldwide, reflecting the performance of locations that have been open for at least a year. However, its US segment, which is considered a key market, experienced a concerning 1.4% decline in same-store sales. These figures suggest that the company’s growth momentum has slowed and that it is facing challenges in maintaining strong sales performance.

One factor contributing to the disappointing quarter was an E. Coli outbreak that affected specific menu items, including the popular Quarter Pounder. However, while this played a role, it is important to recognize that the challenges extended beyond just the fourth quarter.

That said, McDonald’s Corporation (NYSE:MCD) has grabbed investors’ attention due to its dividend policy and cash position. At the end of FY24, the company had over $1 billion available in cash and cash equivalents and its total assets amounted to nearly $12 billion. Moreover, it has been growing its payouts for 48 consecutive years, which makes MCD one of the best stocks for a dividend stock portfolio. The company pays a quarterly dividend of $1.77 per share and has a dividend yield of 2.28%, as of February 25.