Jim Cramer's Mad Dash: Dividend Will Support Shares of McDonald's

NEW YORK (TheStreet) -- Shares of McDonald's (MCD) are hitting 52-week lows after reporting a global comparable-store sales drop of 3.7%. 

However, Jim Cramer, co-manager of the Action Alerts PLUS portfolio, suggested that shares of McDonald's may soon find a bottom. 

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On CNBC's "Cramer's Mad Dash" Tuesday segment, he explained that despite the fall in global comp-sales, the company's healthy dividend yield of 3.5% will help support the stock. 

He pointed out how well shares of Yum Brands (YUM) traded following a recent drop in global comp-sales, when the stock fell to $68 before rebounding and finishing the day at $72. 

Younger people are moving toward healthy food and eating at places such as Chipotle Mexican Grill (CMG) . However, McDonald's has a strong balance sheet and the stock should find a bottom shortly, Cramer concluded.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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