McDonald’s (MCD) has increased the dividend it pays to shareholders for the 49th consecutive year.
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The Chicago-based restaurant chain announced that its new quarterly dividend will be $1.86, a 5% increase over what it previously paid. With the latest increase, McDonald’s has increased its quarterly dividend for 49 years in a row. The company is on track to hit the 50-year mark with its dividend increase, a development that will make McDonald’s a “Dividend King.”
With the latest dividend increase, MCD stock is now paying stockholders $7.44 per share over the course of a year. That translates into a yield of approximately 2.45% based on the current share price of $303.72.
Steady Income
McDonald’s is widely viewed as one of the best dividend stocks available to investors. Analysts say that consistent profits and cash flow enable McDonald’s to pay a regular dividend and raise it each year, increasing stockholders’ dividend income in the process.
MCD stock has gained 7% this year. While that is below the 18% gain in the benchmark S&P 500 index, the dividend yield gives the stock an added boost and provides investors with an incentive to continue holding shares. McDonald’s has consistently paid a dividend every year since 1976.
Is MCD Stock a Buy?
McDonald’s stock has a consensus Moderate Buy rating among 26 Wall Street analysts. That rating is based on 13 Buy and 13 Hold recommendations issued in the last three months. The average MCD price target of $326.14 implies 7.48% upside from current levels.
