Services
McDonald's Dividend Increase Another Sign Turnaround Is Working: CEO
Published:
Last Updated:
Fast-food giant McDonald’s Corp. (NYSE: MCD) announced Thursday morning that it is raising its quarterly dividend by 6% ($0.05) to $0.94 per share ($3.76 annualized). At the current dividend rate of $0.89 per share, the company’s dividend yield is 3.05%. The new rate is payable December 15 to shareholders of record on December 1.
McDonald’s noted that it has raised its dividend every year since paying its first dividend in 1976. In addition, 2016 represents the final year of the company’s three-year, $30 billion cash return to shareholders target. Through August, the company returned a cumulative $26 billion and is on track to complete the remaining amount by the end of the year.
CEO Steve Easterbrook said:
I’m encouraged by the meaningful progress we’ve made against our turnaround plan and energized by the opportunities that lie ahead. Today’s dividend increase reflects the strength and stability of our cash flow and our continued focus on driving long-term value for all stakeholders.
McDonald’s plans to release third-quarter results before markets open on October 21. Analysts expect earnings per share (EPS) of $1.49 and revenues of $6.29 billion. In the same period last year, the company reported EPS of $1.40 and revenues of $6.62 billion.
For the full year, analysts estimate EPS at $5.56 on sales of $24.42 billion, significantly better than EPS of $4.98 last year, but lagging behind 2015 revenues of $25.41 billion.
The stock traded up about 0.6% in the late morning on Thursday, at $115.87 in a 52-week range of $97.13 to $131.96. The consensus 12-month price target is $129.09.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.