McDonald’s has been a favorite among dividend investors for many years. The company’s well-known fast food restaurants attract customers worldwide, making it a reliable choice for investors looking for steady dividends.
Currently, McDonald’s pays a quarterly dividend of $1.67 per share, totaling $6.68 annually. With the stock trading around $257, investors can enjoy an above-average yield of 2.6%, compared to the S&P 500’s average yield of 1.3%.
To receive $1,000 in dividend income from McDonald’s, an investment of approximately $38,500 would be needed. However, even if that amount is not feasible at the moment, annual dividend payouts could still increase over time. McDonald’s is known for being a dividend growth stock, having raised its payout for 47 consecutive years, including a 10% increase last October.
In addition to its dividend, McDonald’s is focused on expansion, aiming to reach 50,000 restaurants by 2027 from its current 42,000 locations in over 100 countries. The company continues to show steady growth in revenue, earnings, and comparable-store sales, making it a reliable choice for long-term dividend growth investors.
For those seeking a solid blue-chip stock with a history of consistent dividend growth, McDonald’s is a strong choice.