11/10/2015 McDonald’s (MCD) announced their annual dividend increase today, bumping it up 5% for the Q4 December payment to $0.8925 per share, from last year’s $0.85 quarterly dividend announced in 2014. Previous increases were $0.85 (2014), $0.81 (2013), $0.77 (2012), $0.70 (2011). The average increase over the previous 5 years is running at 4.97% per year, nothing crazy, but not too shabby for a slow burn.
The increase was a little higher than I was expecting at $0.88.
McDonald’s increased their dividend every year since going public in 1976 . Had you purchase the stock back in 1976, sat on the burger company until today, you would have realized a sick average increase of your dividend of 20.49% PER YEAR. That’s just the dividend, not even worrying about stock appreciation.
Payout ration for the company based on the previous year’s earning will come in at 74.375% based on the new quarterly dividend. High, yes, but this is for a pretty boring company with pretty much predictable earnings growth. They have also gone through a transition this previous year, so earning were a little weak, but that should improve. So, I’m not concerned about that payout ratio for them.
The current yield based on today’s closing price of $113.22 is at 3.15%.
Have been buying and holding MCD for some years now. Basically, a buy on the dips kind of company for me.
Thanks for the increased income year after year, you goofy looking clown from Illinois.
BamfMoney.com is a fan of boring dividend growth companies for the slow and steady income growth potential from these companies. Having increasing income year over year without having to work is pretty cool, and outpacing inflation doesn’t suck either.
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