McDonald's Yields 3%, the Highest in Over 6 Years. Is the Dow Dividend Stock a Value Trap or Too Cheap to Ignore?

Key Points Shares of fast-food chain McDonald’s have taken a sizeable tumble in response to disappointing sales. It remains to be seen how well or how quickly the reasons for this weak revenue will be shored up. There’s nothing about the current headwind that this company hasn’t seen and overcome before. 10 stocks we like better than McDonald's › All income-minded investors can agree that, generally speaking, higher yields are better than lower yields. Still, wise investors know to be suspicious when a dividend stock's yield reaches unusually high levels. It could be a temporary entry opportunity. Or, however, it might be the result of weakness that's ultimately a red flag.