Sushree Mohanty

Mon, Jun 23, 2025, 8:31 AM5 min read

In times of market turbulence, investors often seek stability. When volatility strikes and economic uncertainty clouds the outlook, turning to safe-haven stocks can offer a sense of protection. Here, dividend stocks come into play. These companies have strong fundamentals, resilient business models, and consistently pay dividends regardless of market conditions. Dividend Kings and Aristocrats, in particular, not only pay dividends, but also increase dividends on a consistent basis, ensuring a steady income.

The first name on my list is McDonald’s Corporation (MCD), which is one of the most well-known global brands. It has long been regarded as a cornerstone in conservative investment portfolios, and with good reason. McDonald’s operates in over 100 countries and has a proven franchise model that generates consistent and recurring cash flows.

• Triple Your Kimberly-Clark Dividend with this Options Strategy

• 3 Safe-Haven Stocks to Buy to Ride Out Market Turmoil

• Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!

Over the last decade, McDonald’s stock has returned 202%, outperforming the S&P 500 Index’s ($SPX) gain of 190%.

McDonald’s has consistently paid dividends to shareholders for more than four decades. It has increased its dividend annually for over 49 years, earning it the elite status of a Dividend Aristocrat. McDonald’s boasts a forward dividend yield of 2.46%, higher than the consumer discretionary average yield of 1.89%. Its forward dividend payout ratio (the percentage of net income paid out as dividends) is 53.4%, which is sustainable and allows for dividend growth.

Its dividend growth is supported by strong free cash flow and a disciplined capital return strategy. Even during economic slowdowns, McDonald’s continues to generate solid earnings from its affordable food offerings, making its dividend both attractive and sustainable. Over the last five years, McDonald’s earnings have increased at a compounded annual growth rate (CAGR) of 12.5%. Analysts expect McDonald’s earnings to increase by 4.7% in 2025, before rising by 8% in 2026.

Overall, Wall Street rates MCD stock a “Moderate Buy.” Out of 34 analysts covering the stock, 13 have a “Strong Buy” rating, two have a “Moderate Buy” rating, 18 suggest it is a “Hold,” and one says it is a “Strong Sell.” Analysts have assigned a mean target price of $334.07 to MCD, implying a roughly 16% upside from current levels. Its Street-high estimate of $370 implies the stock can go as high as 29% in the next 12 months.