Thursday, September 30, 2021

Dividend Increase #65 of 2021 - McDonald's Corporation (MCD)



Thursday, September 23rd the Board of McDonald's Corporation (MCD) announced a quarterly dividend increase of from $ 1.29 to $ 1.38 per share that’s payable December 15, 2021 to holders of record December 1, 2021. This represents a 6.98% increase over the last quarterly dividend.


McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for 45 consecutive years since paying its first dividend in 1976. The new dividend of $1.38 per share is equivalent to $5.52 annually.


Additionally, the Company announced the resumption of its share repurchase program. The Company is committed to its capital allocation philosophy of reinvesting in the business to drive profitable growth and returning all free cash flow to shareholders over time through a combination of dividends and share repurchases.


With current price $ 244.28 (yesterday's close), this raise brings their dividend yield to 2.26%.


McDonald's Corporation is a Dividend Champions with a 45 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 6.6, 9.6, 7.9 and 8.4 (Dividend Champions.xls)



Since I own 20 shares of MCD, this will increase my portfolio's projected annual net dividend income by $ 5.36.


This increase was a couple of percent higher than I expected, but I will be happy to take it.


This is the eight dividend increase I received from McDonald's Corporation since initiating a position August 2014. During this period, the quarterly dividend has risen passably from $ 0.81 to $ 1.38, or 70.4 percent.


This increase raises my YOC to 5.84%.



Summary of 2021 Dividend Increases / Cuts



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You can follow the development of my dividends here.


Full Disclosure: Long MCD


Thanks for stopping by!


1 comment:

  1. Loved seeing this raise from MCD. Like you it came in better than I was expecting as I was expecting 4-5% so it's always good to get a surprise to the upside.