Wednesday, September 18, 2013

Dividend Increase: MCD

McDonald's (MCD) is increasing its quarterly dividend by 5.2%, from $0.77 to $0.81 per share, putting the company on track for its 38th consecutive year of dividend growth (news release). Given that I own 50 shares of MCD, my quarterly dividend increases from $38.50 to $40.50 and my yield on cost becomes 3.63%. The extra $8.00 in annual dividend income raises my forward 12-month dividend total to $2,776. Thus far this year, there have been dividend increases for 25 of the 29 stocks in my portfolio.

7 comments:

  1. The stock has dipped about 133 basis points this morning, increasing the yield even more...

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    1. BidAsk: If the stock dips below $95 then I would consider making a purchase.

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  2. Interesting the growth rate has dropped so much....previously it was circa 10%, I wondering if MCD expect decelerating income and hence dividend growth going forward. I was hoping for a little more. Will have to monitor this more closely going forward

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    1. Integrator: I think it's a reflection of recent operating results. EPS growth is expected to be around 5% this year and the dividend increase fits with that expectation. I think dividend growth could pick up when earnings improve overseas, particularly in Europe.

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