McDonald’s (MCD) hikes dividend 3.8%
McDonald's (MCD) raised its quarterly dividend by 3.8% to $1.93 per share on September 17, 2026. The increase marks the company's 50th consecutive year of dividend growth.
The new annualized dividend is $7.72 per share, giving MCD a dividend yield of approximately 3.1% at a share price of $248.37. The ex-dividend date is December 1, 2026. McDonald's five-year dividend CAGR is 6.9%.
The 3.8% dividend hike is McDonald's smallest since 2020, when the company raised its dividend by 3.2% during the COVID-19 pandemic. Dividend growth had subsequently accelerated, including increases of 10.1% in 2022 and 9.9% in 2023, before slowing to 6.0% in 2024 and 5.1% in 2025.
McDonald's is a Dividend Aristocrat and is currently also included among the Dividend Heroes. Based on the Dividend Heroes requirement referenced for the portfolio, MCD is set to drop out next year because its latest dividend increase was below 5%.
MCD shares are down approximately 17% in 2026 and are trading around their 52-week low. At $248.37, the stock trades at an estimated 19 times 2026 earnings. Revenue is expected to grow by more than 6% this year, with annual revenue growth of roughly 3% to 5% expected in the following years.
McDonald's currently distributes almost $5.5 billion in dividends annually. Around the current share price, the analyst consensus provided for MCD consists of 7 Strong Buy, 15 Buy, 15 Hold and 1 Sell recommendation.
McDonald's Corporation operates and franchises McDonald's restaurants worldwide, with revenue generated through company-operated restaurants as well as rent, royalties and fees from franchised locations.
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.