Fast-food giant delivers solid dividends

Article Excerpt

MCDONALD’S CORP. $164 (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 810.0 million; Market cap: $132.8 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest operator of fast-food restaurants, with 36,976 outlets in 120 countries. It serves a wide variety of food, but is best known for its hamburgers and french fries. 41 years of rising dividends McDonald’s began paying dividends in 1976, and has increased the annual rate each year since then. That includes a recent 7.4% hike in the quarterly dividend. Starting in December 2017, investors will receive $1.01 a share, up from $0.94. The new annual rate of $4.04 yields 2.5%. The company’s sales rose 2.0%, from $27.6 billion in 2012 to $28.1 billion in 2013. Annual sales then fell to $27.4 billion in 2014, and to $24.6 billion by 2016. McDonald’s earnings rose 2.2%, from $5.4 billion in 2012 to $5.6 billion in 2013. Due to fewer shares outstanding, earnings per share…