Dividend Aristocrat McDonald's raises dividend 3.2% in 2020
In today's press release McDonald's announces the dividend increase: On October 7, 2020, McDonald's Board of Directors declared a quarterly cash dividend of $1.29 per share of common stock payable on December 15, 2020 to shareholders of record at the close of business on December 1, 2020. This represents a 3% increase over the Company's previous quarterly dividend. While current year business results have been impacted by the COVID-19 pandemic, the pace of recovery paired with the Company's strong financial position support this increase to the dividend while still giving the Company the ability to invest in the business.
McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for over 40 years consecutively since paying its first dividend in 1976. The new quarterly dividend of $1.29 per share is equivalent to $5.16 annually.
"Our third quarter performance demonstrates the underlying resilience of the McDonald's brand. Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic. Our prior investments in these areas position us to further our competitive advantage and enable restaurant crew to continue to safely provide customers our great tasting food," said McDonald's President and Chief Executive Officer Chris Kempczinski. "Today's dividend increase reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value while still investing in our people and the business."
At a stock price of $226 the new annual dividend yields 2.3% for MCD. Last year the Big Mac maker hiked its dividend by almost 8 percent. Other Dividend Aristocrats announcing a higher dividend in 2020 despite COVID-19 are Lowe's Companies and Dover Corporation.
McDonald's is the world's leading global foodservice retailer with approximately 37,000 locations in over 100 countries. Over 90% of McDonald's restaurants worldwide are owned and operated by independent local business men and women.