McDonald's hikes dividend by 10% in 2022 | 46th consecutive year of dividend growth
On October 13, 2022, McDonald's (trading symbol: MCD) announced 10.1% dividend increase to a new record high of $1.52 quarterly per share. This marks the 46th consecutive year of dividend growth for the the world's leading global foodservice retailer.
McDonald's Board of Directors declared a quarterly cash dividend of $1.52 per share of common stock payable on December 15, 2022 to shareholders of record at the close of business on December 1, 2022. A new annual dividend rate of $6.08 for MCD yields 2.5% at a stock price of $246.75 for the Dividend Aristocrat.
McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for 46 consecutive years since paying its first dividend in 1976. The new dividend of $1.52 per share is equivalent to $6.08 annually. 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 7.0%, marking 45 straight years of dividend growth. The 2022 dividend hike just announced by McDonald's is the biggest since 2018 and only the third double digit dividend hike since 2012.
The 5 year average annual dividend growth rate (CAGR) now jumps to 8.5% for McDonald's. With the stock price down 8% YTD the dividend yield will rise to 2.5% based on Thursday's closing price of $246.75. Based on calculations by dividendtrackrecords.com McDonald's will pay shareholders a total annual dividend amount of $4.5 billion.
McDonald's is the world's leading global foodservice retailer with almost 40.000 locations in over 100 countries. Approximately 95% 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.