Thursday, September 26, 2024

Dividend Increase - McDonald's Corporation (MCD)

 



Yesterday, September 25th the Board of Directors of McDonald's Corporation (MCD) announced a quarterly dividend increase of from $1.67 to $1.77 per share that’s payable December 16, 2024 to holders of record December 2, 2024. This represents a 5.99% increase over the last quarterly dividend. The increase over the Company's previous quarterly dividend reflects continued confidence in the Accelerating the Arches growth strategy and our ability to drive long-term profitable growth for all stakeholders.


McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for 48 consecutive years since paying its first dividend in 1976.


With current price $300.47 (yesterday's close), this raise brings their dividend yield to 2.36%.



McDonald's is a Dividend Champions with a 48 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.1, 7.3, 8.3 and 7.2 (Dividend Champions.xls)



Since I own 20 shares of MCD, this will increase my portfolio's projected annual net dividend income by $5.96.


I was expecting an increase of around 8%, so the increase now announced is a little lower than my own expectations, but of course I am happy to accept that too.


This is the eleventh dividend increase I received from McDonald's Corporation since initiating a position August 2014. During this period, the quarterly dividend has risen comfortably from $0.81 to $1.77, or 118.5 percent.


This increase raises my Yield on Cost to 7.49%.



Summary of 2024 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long MCD


Thanks for stopping by!


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