On September 17, McDonald's (MCD) increased its dividend by 3.76%, from $1.86 to $1.93 per share. The increase marks McDonald's 50th consecutive year of dividend growth, lifting it into the ranks of the Dividend Kings.
The dividend is payable on December 15 to shareholders of record on December 1.
MCD's contribution to DivGro's projected annual dividend income will increase by $14 to $386.
Created by the author
I own 50 shares of MCD at an average cost basis of $148.63 per share. Following this increase, my yield on cost is 5.19%. (The stock's forward yield is 3.11% at $248.24 per share.)
Since I opened my position in September 2014, the stock has delivered a total return of 100%, including dividends of $2,434.13. That's a solid annualized rate of return of 9.3%!
MCD became DivGro's 10th Home Run stock in January 2018, when it doubled my original capital outlay.
| 2021 | 2022 | 2023 | 2024 | 2025 | • | 2026 |
| $5.250 | $5.660 | $6.230 | $6.780 | $7.170 | ⬆ | $7.510✝ |
| 4.17% | 7.81% | 10.07% | 8.83% | 5.75% | ⬇ | 4.74% |
| 5-year DGR: | 7.30% | ⬆ | 7.42% | |||
✝projected, assuming no further changes
Created by the author
My quality model scores MCD at 6.65. Seeking Alpha flags MCD's dividend grade at D–, well below the safer end of the scale. On F7 Credit Rating & Capital Structure, MCD sits at 3.8. MCD's 50-year dividend growth streak puts it among the Dividend King tier of long-term raisers.
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