McDonald's Corp (MCD) Dividends (2024)

FAQs

Is McDonald's a good dividend stock? ›

Considering McDonald's Corp's track record of dividend payments, consistent dividend growth rate, prudent payout ratio, strong profitability, and impressive growth metrics, the company stands out as a potentially robust dividend-paying stock.

“If you had given your $1,000 investment into McDonald's a decade to grow, it would be worth about $3,270,” CNBC said. Looking at the stock in the long-term, experts say there is no real reason to sell McDonald's stock.

One dividend stock that can help grow your portfolio's value and generate massive dividend income for you over the years is McDonald's (NYSE: MCD). Here's why this can be an ideal stock for buy-and-hold investors to hang onto for the long haul.

Living off dividends is a financial strategy that appeals to those aiming for a reliable income stream without tapping into their investment principal. This approach has intrigued many investors, from early-career individuals to those nearing retirement.

Stock Split

McDonald's Corporate's initial public offering was April 21, 1965. Since going public in 1965, McDonald's has executed 12 stock splits.

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

Stable Payout Ratio: The payout ratio of McDonald's stands at 52.18%, indicating that the company pays just over half of its earnings as dividends. This level suggests a careful balance, maintaining enough retention for growth while rewarding shareholders.

Altria Group, Inc. (NYSE:MO), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ) are some of the highest-paying dividend stocks in the S&P 500 among others that are discussed below.

How often does Coca-Cola pay dividends? ›

The Company normally pays dividends four times a year, usually April 1, July 1, October 1 and December 15. Shareowners of record can elect to receive their dividend payments electronically or by check in the currency of their choice.

And if you had given your $1,000 investment into McDonald's a decade to grow, it would be worth about $3,270 as of Feb. 1, according to CNBC's calculations.

Looking ahead, McDonald's is probably going to grow EPS at a single-digit annual rate as it has in recent years. Therefore, I believe investors are unlikely to lose money. But the modest growth opportunity means that investors shouldn't expect returns to necessarily crush the performance of the S&P 500.

The restaurant chain looks appealing after its recent stock-price pullback. If you're hungry for a cheap stock to put in your portfolio, you're in luck. McDonald's (MCD -0.91%) shares have sat out of the market rally in the past year, barely rising since March 2023 compared to the 31% spike in the S&P 500.

Intrinsic Value. The intrinsic value of one MCD stock under the Base Case scenario is 199.94 USD. Compared to the current market price of 272.345 USD, McDonald's Corp is Overvalued by 27%.

McDonald's has received a consensus rating of Moderate Buy. The company's average rating score is 2.71, and is based on 20 buy ratings, 8 hold ratings, and no sell ratings.