Thursday, September 25, 2008

McDonalds Increases Dividend 33.3%

Today, McDonalds Corp. (MCD) announced a 33.33% YOY increase in the company's quarterly cash dividend. The new quarterly dividend increases to 50 cents per share versus an equivalent 37.5 cents per share paid in the 4th quarter last year. It should be noted that prior to 2008, MCD paid one annual dividend. In 2007 the annual dividend was $1.50. The projected payout ratio is approximately 53% based on 2009 estimated earnings of $3.81. The 5-year historical payout ratio is approximately 44%.

(click on table/chart for larger image)

McDonalds dividend analysis table September 2008
McDonalds stock chart September 2008


Anonymous said...

Thanks for reporting this timely. Your site was the first place that I saw this good news.
GE maintains its dividend while MCD increases it.

Dividends Anonymous said...

Mmm Mmm Mmm...I'm Lovin it!!!

You have to think though that in the current market environment some dividend payers might be increasing dividends strategically in order to appeal to income investors who are being pushed out of financials due to increasing risk & losses. Smart on their part as long as the payout continues to be conservative