eBay, McDonald's and Constellation Brands: Dividend Stocks to Watch
eBay (EBAY -0.94%), McDonald's (MCD -0.10%), and Constellation Brands (STZ -2.84%) are three dividend stocks that have continued to increase their payouts despite economic challenges related to inflation, tariffs, and higher gas prices.
eBay has seen solid momentum by focusing on the right categories for shoppers and providing AI-powered tools to make listing items easier for sellers. Revenue grew 15% year over year in the second quarter, with consumer-to-consumer sales, pre-owned, and refurbished items making up over 70% of gross merchandise volume.
The company's acquisition of Depop, a popular fashion marketplace, can expand its reach to Gen Z and Millennials. With a modest forward yield of 1.2%, eBay's quarterly payment has grown at a 12% annual rate over the past five years, yet it paid out just 20% of free cash flow over the past year.
McDonald's stock has dipped 17% over the past year, but its strong free cash flow supports continued dividend growth. The company generates high profitability through its franchise-heavy model and is focusing on improving food quality, hospitality, and operating efficiency.