What McDonald's Latest Dividend Hike Means for Investors
McDonald's announced its 48th straight dividend increase. Here's why dividend growth is so important.


McDonald's (MCD) gave income investors something to cheer about Thursday when the fast food giant announced another dividend hike, extending its long streak of annual increases.
The company's latest 6% raise brings McDonald's quarterly dividend to $1.77 per share, or $7.08 per share on an annual basis. This works out to be less than 60% of analysts' expected earnings of $11.82 for McDonald's full fiscal year, suggesting this payout is secure. The next dividend is payable on December 16 to shareholders of record at the close of business on December 2.
Incredibly, this latest increase marks the 48th consecutive year in which McDonald's has raised its annual dividend payment.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Why McDonald's dividend hikes matter
Businesses with dependable dividend growth are important for several reasons. For one, "companies that raise their payouts like clockwork decade after decade can produce superior total returns (price change plus dividends) over the long run, even if they sport apparently ho-hum yields to begin with," writes Dan Burrows, senior investing writer at Kiplinger, in his feature on the best dividend stocks for dependable dividend growth.
Indeed, MCD stock is up 12.6% on a price return basis over the past 12 months, but 14.1% higher when you add in the dividend. Over the past five years, McDonald's is up 58.8% on a total return basis vs 42.8% just based on price.
Additionally, dividend growers offer some peace of mind to investors. "After all, any company that manages to raise its dividend year after year – through recession, war, market crashes and more – is demonstrating both its financial resilience and its commitment to returning cash to shareholders," Burrows adds.
McDonald's decades-long streak of consistent dividend growth makes it a member of the Dividend Aristocrats, the best dividend stocks in the S&P 500 that have consistently raised their annual payouts for 25 straight years.
And if it makes it to 50 consecutive years of dividend hikes, McDonald's will join the elite group of Dividend Kings.
Is MCD stock a buy, sell or hold?
Analysts are upbeat toward the Dow Jones stock. According to S&P Global Market Intelligence, the consensus recommendation among the 37 analysts it tracks that are following MCD is a Buy.
However, analysts' price targets have struggled to keep up with McDonald's recent rally. Currently, the average analyst price target of $302.44 represents implied upside of less than 1% to current levels.
Financial services firm Jefferies is one of the more bullish outfits on MCD stock with a Buy rating and $330 price target.
"Management has focused on the 3 'Ds': digital, delivery, and drive-thru, and a '4th D' now in focus, i.e., an acceleration in new unit growth," said Jefferies analyst Andy Barish in a September 9 note. He added that his firm expects an operating margin in the mid-to-high 40% range and they see further acceleration in chicken sandwich momentum and rewards as potential drivers of near-term same-store sales growth.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Y Rule of Retirement: Why Men Need to Plan Differently
If you have a Y chromosome (because you're a guy), following the 'Y rule of retirement' can help you transition to this new life stage with grace.
-
Retire on This Island for Mediterranean Living on the Cheap
This independent nation has a lower cost of living and more visa options than many of its Mediterranean cousins.
-
5 Popular Investing Strategies You Should Really Rethink
There are plenty of popular sayings that help guide your investing strategies, but which ones work? We turned to the experts and historical data to find out.
-
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995
Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
-
An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work
When did you last review your will? Before kids? Before a big move? An update is essential, but regular reviews are even better. Here's why.
-
Nasdaq Ends the Week at a New High: Stock Market Today
The S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
For a Richer Retirement, Follow These Five Golden Rules
These Golden Rules of Retirement Planning, developed by a financial pro with many years of experience, can help you build a plan that delivers increased income and liquid savings while also reducing risk.
-
Time for a Money Checkup: An Expert Guide to Realigning Your Financial GPS
Even if your financial plan is on autopilot, now is the perfect time to make sure it's still aligned with your goals, especially if retirement is on the horizon.
-
Stocks Swing Lower as Eli Lilly, Fortinet Spiral: Stock Market Today
The main indexes finished well off their session highs after a disappointing batch of corporate earnings reports.
-
Are You Leaving Money on the Table? Four Strategies to Free Up Stuck Investments
From forgotten 401(k)s to outdated asset allocations, here’s how stuck money can hurt your retirement.