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All It Takes Is $40,000 Invested in This Dow Dividend Stock to Help Generate $1,000 in Passive Income in 2026
Yahoo Finance· 2026-01-07 11:35
Company Overview - McDonald's is positioned as a strong investment option, particularly for passive income through dividends, with an expected annual return of at least $1,000 on a $40,000 investment [2] - The company is on track to become a Dividend King by 2026, having raised its dividend for 49 consecutive years, which indicates a commitment to returning capital to shareholders [4] Financial Performance - McDonald's has produced a total return of 229% over the last decade, although its stock has only increased by nearly 15% in the last three years, underperforming the S&P 500's nearly 80% gain [5] - In the third quarter of 2025, McDonald's reported a 3.6% increase in comparable sales and an 8% growth in systemwide sales year over year, indicating resilience in its business model [8] Industry Context - The restaurant industry is facing challenges due to reliance on consumer discretionary spending, with sit-down restaurants struggling more than quick-service options like McDonald's [8] - McDonald's business model is considered recession-resistant, appealing to risk-averse investors, supported by predictable cash flow from franchisees [7]