Dividend Aristocrat McDonald's raises dividend 45th year in a row

MCD logo 2021
Dividend Aristocrat McDonald's (MCD) will hike its dividend by seven percent in 2021, marking 45 consecutive years of dividend increases. The new dividend yield for MCD is 2.3%.

From the company's press release: McDonald's (a Dividend Aristocrat) Board of Directors declared a quarterly cash dividend of $1.38 per share of common stock payable on December 15, 2021 to shareholders of record at the close of business on December 1, 2021. This represents a 7% increase over the Company's previous quarterly dividend and brings the fourth quarter dividend payout to over $1 billion. The dividend increase reflects confidence in the Accelerating the Arches growth strategy and a continued focus on driving 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 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. 

Last year McDonald's hiked its dividend by 3.2 percent despite the corona-pandemic. Many peers have cut or suspended the dividend in 2020. The new annual dividend yields 2.3% at a stock price of $244.78 for MCD.

McDonald's is the world's leading global foodservice retailer with over 39,000 locations in over 100 countries. Approximately 93% of McDonald's restaurants worldwide are owned and operated by independent local business owners. The U.S. segment focuses on menu and offerings, as well as delivery and digital platforms. Its IOM segment includes its operations in markets, such as Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the United Kingdom. 

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