If you're looking for a dividend stock safely add to your portfolio, McDonald's (NYSE:MCD) always presents an attractive option. That fast food giant's golden arches are known all over the world and its profit margins have been above 22% in each of the past five years. Although this by no means is a growth machine, McDonald's can make for a solid income stock to own. At 2.3%, its dividend yield is a full point better than the S&P 500 average yield of just 1.3%.
One reason to consider buying the stock today is that its shares have fallen 12% year to date, making it a cheaper buy. Although it still has a way to go to reach its 52-week low of $202.96, investors shouldn't assume it will fall that low. McDonald's generates most of its revenue from international markets and so the Russian invasion of Ukraine is likely adding pressure to the stock. But the net impact of this may not be significant for McDonald's. It noted in supplement data that it released that Russia and Ukraine made up just 2% of its total systemwide sales for 2021. And those markets accounted for less than 3% of operating income.
And for dividend investors, this focus should always be on the long term. McDonald's is a global company and conflict around the world has, unfortunately, been unavoidable over the years. Despite this, the stock has remained a solid investment and will likely continue to be one for the foreseeable future.
Now may be as good a time as any for investors to add the stock to their portfolios.
