McDonald's stock recently hit a 52-week low, but the Dow component is poised to become a Dividend King with its 50th consecutive annual dividend increase expected in September or October. CEO Chris Kempczinski acknowledged a constrained consumer environment led to systemwide same-store sales growth of only 1.3% and domestic growth of 0.8% in the second quarter. The stock's 21% pullback from its late-February peak has pushed its forward dividend yield to 2.8%. Once the 50th straight hike is announced, funds that track Dividend Kings will need to buy the stock, potentially sparking a recovery rally.
McDonald’s CorporationStock at 52-week low, but nearing 50th dividend increase; consumer environment weak, sales growth slow, but dividend status may attract funds.
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