McDonald's increases dividend for 40th consecutive year

Dividend Aristocrat McDonald's (MCD) will hike its dividend by 5.6%.

The quarterly dividend will be raised to $0.94 per share, marking 40 years of consecutive dividend increases by McDonald's.

McDonald's President and Chief Executive Officer Steve Easterbrook said, "I'm encouraged by the meaningful progress we've made against our turnaround plan and energized by the opportunities that lie ahead. Today's dividend increase reflects the strength and stability of our cash flow and our continued focus on driving long-term value for all stakeholders."

McDonald's has raised its dividend each and every year since paying its first dividend in 1976. The new quarterly dividend of $0.94 per share is equivalent to $3.76 annually. In addition, 2016 represents the final year of the Company's three-year, $30 billion cash return to shareholders target. Through August, the Company returned a cumulative $26 billion and is on track to complete the remaining amount by the end of the year.

The new dividend yield for McDonald's, the world's leading global foodservice retailer with over 36,000 locations in over 100 countries, is 3.3%. Last year Dividend Aristocrat McDonald's hiked its dividend by 4.7%.

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