The stock market has been rallying in recent weeks, but one top dividend stock that hasn't been doing well of late is McDonald's (NYSE:MCD). The iconic fast-food giant has seen its stock slide over the past twelve months, down approximately 8%. The decline has pushed its yield up to around 2.6%.
In recent weeks, it's been doing particularly poorly, with it now hovering around a Relative Strength Index (RSI) of 30. RSI is a momentum indicator that is a gauge as to how aggressive buying or selling has been over the past 14 trading days. Once the RSI falls below 30, a stock is considered oversold, suggesting that it may be due for a recovery.
McDonald's stock closed at just over $290 on Monday and it's getting close to its 52-week low of $283.47. For value-oriented dividend investors, it could make for an intriguing stock to buy right now given its strong fundamentals and impressive track record for dividend growth.
While economic conditions may not be deal these days, the company is actively addressing consumer spending shifts by rolling out aggressive pricing strategies. On April 21, the chain officially launched its new budget-friendly value menu, expanding on the McValue Menu initially introduced in 2025.
Last year McDonald's generated $26.9 billion in revenue, which was an increase of 4% from the previous year. Its bottom line also rose by a similar percentage. By targeting more growth initiatives, the stock may be able to attract more investors, to help push its share price up. At 24 times trailing earnings, it may be a tad expensive, but as a long-term investment, the stock can be a good option to hold on to, particularly for the dividend income it could generate.
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