McDonald’s Corp (NYSE: MCD) is a company that needs no introduction. It is an American multinational fast food chain that was founded in 1940 and is based out of Chicago, Illinois. Its golden arches logo is one of the most recognizable brands in the world and as of 2021, it has over 40,000 restaurants in more than 100 different countries. The first McDonald’s restaurant was founded in 1940 in San Bernadino, California by brothers Richard and Maurice McDonald. The stock is a component of the Dow Jones Industrial Average, the S&P 500, and the exclusive S&P 100 index of blue-chip stocks.

In 2022, McDonald’s has shown the strength of its brand when it comes to stock performance. For the year, shares are down by less than 5%, which outpaces the performance of the benchmark S&P 500 index. If we zoom out to the past 52 weeks, McDonald’s is actually up by nearly 8%. The business remains strong despite a looming recession as people begin to seek out more affordable food options. In many markets around the world, McDonald’s is still the number one name people think of when they are seeking out fast food.

McDonald’s 2022 Forecast

McDonald’s has been one of the few large-cap companies to continue to outperform the broader markets this year. Can McDonald’s keep it up? The company continues to innovate for both its menu offerings and corporate partnerships. The novelty of the adult Happy Meal has still not worn off and is causing many people to post their nostalgic meals on social media. This is certainly the desired effect and is reintroducing a generation that previously shunned the restaurant for their unhealthy menu choices.

This year will likely continue to be a trying year for most businesses, especially as inflation remains out of control. Although chains like McDonald’s will still see an impact, it won’t be as much as for industries like retail or tech. With a continued focus on ordering through a digital platform, automated ordering, and food delivery, technology could be eliminating some staff at what was previously the world’s second-largest private employer next to Walmart.

McDonald’s Dividend Outlook 2022

Similar to other blue-chip stocks like Home Depot, McDonald’s is well worth holding through market volatility due to its generous dividend, Currently, the stock pays an annualized dividend yield of 2.38% which it pays out on a quarterly basis. The company announced in mid-October that it is raising the dividend by 10% this year, bringing the total to about $6.08 per share annually and $1.52 per share each quarter. {learn more about McDonalds 2021 Dividend Overview)

McDonald’s is a cash flow generating machine and has a payout ratio of 66.87% right now. Holding McDonald’s stock for its dividend as the market recovers is a great way to remain invested and recoup some cash flow. Since paying its first dividend in 1976, the company has raised its dividend for 46 consecutive years making it a true dividend aristocrat. If it can continue to raise its dividend through 2027, it will enter the even more exclusive club of the dividend kings.