Fast-food giant McDonald's (NYSE:MCD) is a staple of the American economy. It's also a favorite investment among income-seeking investors.
Does this mean it's a great dividend stock to buy today? In the following video, Motley Fool contributor John Maxfield explains why the answer is yes.
In the first case, its 3.3% yield easily outpaces the general market, measured by the S&P 500's 1.96% yield. Additionally, it distributes only 56% of its earnings to shareholders each quarter, meaning there's plenty of room left for its dividend to grow. Finally, McDonald's has now increased its dividend for 38 sequential years, qualifying it for inclusion in the coveted Dividend Aristocrats and suggesting that there's no reason for investors to fear that it will be cut anytime soon.
As John explains, these factors make McDonald's one of the best dividend stocks in the market today.
John Maxfield has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.