McDonald’s may not be the growth powerhouse it once was, but its dividend-paying stock performs well during market downturns. Despite a decline in lower-income customer traffic, the stock has gained 46% over the past five years and 63% with dividends reinvested. McDonald’s stock is considered a defensive holding due to its consistent performance, even during bear markets. The company’s growth is now driven by price increases and foot traffic, as physical expansion opportunities diminish with 44,599 restaurants worldwide. Over 95% of McDonald’s stores are run by franchisees who pay rent to operate from buildings owned by the company, generating reliable revenue and supporting dividends raised for 49 consecutive years. McDonald’s stock has consistently outperformed the S&P 500 in the past but now relies on rental real estate revenue for growth. While not included in the top 10 stocks to buy now by the Motley Fool Stock Advisor, McDonald’s remains a reliable and formidable investment.

Read more at Yahoo Finance: How Good Has MCD Stock Actually Been?