MCD - Ignore PepsiCo -- Here's a Better Stock for Passive Income
2024-02-25 07:39:00 ET
PepsiCo (NASDAQ: PEP) recently gave investors some new reasons to feel cautious about the stock. While the company achieved solid sales growth this past year, demand slowed into early 2024, according to management's early February update. The consumer staples company is also projecting weaker sales trends ahead as its inflation-based price increases end.
That's unfortunate news for income investors since Pepsi and its 3% dividend yield are so popular with fans of passive income. But there's another top dividend company that looks more attractive today and pays a hefty yield of nearly 2.5%. Let's look at some reasons to buy McDonald's (NYSE: MCD) right now.
McDonald's shares fell in the wake of its early February earnings report, yet investors should see that drop as a chance to pick up a quality business at a discount. Sure, comparable-restaurant sales through late December slowed to 3% in the fourth quarter from 9% for the full 2023 year. The core U.S. market notched a mildly disappointing 4% increase compared to 9% in the prior quarter as well.
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Ignore PepsiCo -- Here's a Better Stock for Passive Income