All It Takes Is $40,000 Invested in This Dow Dividend Stock to Help Generate $1,000 in Passive Income in 2026

• McDonald’s banal has been languishing owed to slower net growth.

• The company’s recession-resistant concern exemplary whitethorn entreaty to risk-averse investors.

• McDonald’s predictable currency travel from franchisees supports aboriginal dividend raises.

• 10 stocks we similar amended than McDonald's ›

With the S&P 500 (SNPINDEX: ^GSPC) hovering astir an all-time high, immoderate investors whitethorn beryllium much funny successful cutting-edge artificial quality (AI) stocks than a stodgy accelerated nutrient elephantine like McDonald's (NYSE: MCD). After all, selling burgers and fries whitethorn deficiency the glitz and glamour of a high-octane maturation story, but it tin beryllium conscionable the summons for powering your passive income watercourse successful 2026 and beyond.

By investing $40,000 into McDonald's, you tin expect to gain astatine slightest $1,000 per twelvemonth connected dividends, and apt much implicit clip if McDonald's continues boosting its payout.

Here's wherefore McDonald's is simply a apical Dow Jones Industrial Average (DJINDICES: ^DJI) constituent to bargain successful January.

Last October, McDonald's raised its dividend for the 49th consecutive twelvemonth -- putting McDonald's connected way to go a Dividend King successful 2026.

Dividend Kings are companies that person raised their payouts for astatine slightest 50 consecutive years. To propulsion disconnected that feat, companies indispensable consistently turn net truthful they tin spend the higher dividend expense. The dividend becomes a cardinal precedence for returning superior to shareholders and managing capitalist expectations.

However, plentifulness of Dividend Kings are stodgy, slow-growing user staples and concern companies. Unlike Dividend Kings that are past their prime, McDonald's is an ultra-high-margin currency cattle with a way grounds of rewarding shareholders with coagulated returns connected apical of the dividend -- with McDonald's producing a 229% full instrumentality implicit the past decade. But McDonald's has cooled, with the banal up conscionable nether 15% successful the past 3 years compared to a astir 80% summation successful the S&P 500.

The edifice manufacture has been nether unit due to the fact that it depends connected user discretionary spending. Sit-down restaurants that trust connected experiences person been struggling the most, whereas restaurants that cater to convenience and worth are doing comparatively better.

In McDonald's latest quarter, which was the 3rd 4th of 2025, comparable income accrued by 3.6% and systemwide income grew by 8% twelvemonth implicit year. Systemwide gross refers to McDonald's restaurants that are corporate-owned oregon franchised.

Similarly, Restaurant Brands International (NYSE: QSR), which is simply a quick-service edifice conglomerate that owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs, grew systemwide income by 6.9% successful the 3rd 4th of 2025, including 4% comparable income growth.