The fast-food icon continues to reward long-term investors, proving its resilience in a tough economy.
Key Numbers
- 49 years: Consecutive annual dividend increases.
- $1.86: New quarterly dividend per share.
- 5%: The size of the latest dividend hike.
- 2.4%: Approximate forward dividend yield.
When it comes to reliable dividend growth stocks, it’s hard to ignore McDonald’s (NYSE:MCD). The fast-food giant has long been a favorite for investors thanks to its incredibly solid business, which just keeps churning out strong profits and cash flow. That financial strength is why the company can not only pay a reliable dividend but also keep increasing it, giving investors a great reason to hold on for the long haul.
McDonald’s just gave its shareholders another raise. On October 22, the Chicago-based company announced a 5% hike to its quarterly dividend, bringing it to $1.86 per share. This latest bump marks an incredible 49th consecutive year of dividend increases. Barring any major surprises, McDonald’s looks like a shoo-in to hit the 50-year mark next year, earning it the prestigious title of “Dividend King.”
This increase brings the new annual payout to $7.44 per share. Based on its recent share price of around $300, that gives the stock a forward yield of about 2.4%. Even with inflation and tough economic conditions hitting consumers, demand at the Golden Arches has held up strong. This stability is a big reason the stock has climbed just under 6% this year. While many investors buy McDonald’s for that steady dividend check, it has also delivered decent gains, rising close to 34% over the past five years.
For dividend-focused investors or anyone looking to add long-term stability and reliable income to their portfolio, McDonald’s remains a compelling buy.