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McDonald's Corporation Dividends

MCD Stock Analysis

Page title

Section title

Dividend Yield
2.25%
Payout Ratio
57.18%
Dividend Amount Per Share
$6.53
Last Ex-Dividend Date
Sep 03, 2024

MCD Dividend Safety

MCD paid out 57.18% of its $8B earnings as dividends over the last 12 months.

Very Safe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

MCD's Dividend Payout Ratio of 57.18% is considered safe for the Consumer Cyclical sector, indicating that the company retains enough earnings to support business growth.

Interest Rate Coverage

MCD's Interest Coverage Ratio of 8.158 indicates strong financial health with easy coverage of interest expenses.

Income Quality

MCD shows excellent income quality with a ratio of 1.135. This indicates high-quality earnings and low risk of dividend cuts.

MCD Dividend Growth

McDonald's Corporation(MCD) offers a dividend yield of 2.25% and pays $6.53 in dividends per share. Explore the historical dividend growth of MCD.

Dividend Stability

MCD has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

MCD's dividend payments have shown moderate growth, growing by 5.965% annually over the last 5 years.

Earnings Growth

MCD's earnings have grown by 7.045% annually over the last 5 years. This strong earnings growth suggests a stable and increasing income stream, supporting the sustainability and potential growth of dividend payouts.

MCD Dividend Yield Attractiveness

McDonald's Corporation(MCD) provides a dividend yield of 2.25%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

MCD

Peers

Sector

Industry

2.25%

2.81%

3.31%

4.41%

Dividend Yield

MCD's dividend yield of 2.25% is considered good compared to the sector average of 3.305%, providing a strong safety margin for investors.

MCD Cash Flow

Over the past 12 months, MCD generated $26B in revenue, produced $7B in free cash flow, and distributed $5B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

MCD's free cash flow has grown by 4.837% annually over the last 5 years, indicating a strong ability to generate cash and support dividend payments.

MCD Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by McDonald's Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.