One great reason to love dividend stocks is that they offer purely passive income. Coca-Cola (NYSE: KO) and McDonald's (NYSE: MCD) both fit that bill today. Coca-Cola stock is a rare case of a strong, growing business that's priced at a discount.
Fast food is a crowded industry, but McDonald's (NYSE: MCD) consistently outpaces its competition by leveraging its iconic brand and expansive global presence. Today, it is the largest publicly traded fast-food chain by market capitalization, worth roughly $210 billion, significantly surpassing its nearest competitor, Chipotle Mexican Grill, which stands at $61 billion. McDonald's uses primarily a franchise business model with 95% of its more than 41,000 locations owned and operated by independent business owners.
The SDA union for retail, fast food and warehouse workers alleged that McDonald's did not pay about 25,000 managers and supervisors across its 1,000 stores over six years, and is seeking A$100 million ($66.13 million) in backpay. "The SDA is alleging that this was a deliberate and systematic practice by McDonald's and franchisees," the union said in a statement on Friday. McDonald's will respond to the claims in due course, it told Reuters in a statement, adding that the company takes its obligations under all applicable employment laws very seriously.