Back to Dividend Stocks
McDonald's Corporation (MCD) logo

McDonald's Corporation

Dividend AristocratS&P 500
MCD|Consumer Cyclical|Restaurants|$275.75|P/E 22.7|MCap 196.0B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

64/ 100Safe

MCD's dividend appears safe and well-supported. Strengths include a 59.9% earnings payout ratio & 47.4% cfo payout ratio. Areas of concern: 90.8% net debt / total assets & 1.0x current ratio. As a Dividend Aristocrat with 25+ consecutive years of increases, MCD has a proven commitment to shareholders.

Based on 15 of 15 metrics

Strengths

  • Operating Margin: 45.3%Healthy operating margin provides a wide buffer.
  • Gross Margin: 57.5%High gross margin signals strong pricing power.
  • Dividend Streak: Aristocrat (25+ yrs)Long, uninterrupted dividend track record.

Risks

  • Net Debt / Total Assets: 90.8%Net debt is high relative to total assets.
  • Debt-to-Equity: -30.6Debt-to-equity is elevated for the sector.
  • Return on Equity: -478.1%Return on equity is below industry norms.

Payout & Coverage

Safe
Earnings Payout Ratio
59.9%Safe
FCF Payout Ratio
71.2%Caution
CFO Payout Ratio
47.4%Safe
Interest Coverage
7.9xSafe

Balance Sheet

Danger
Net Debt / Total Assets
90.8%Danger
Current Ratio
1.0xWarning
Debt-to-Equity
-30.6Danger

Profitability

Safe
Return on Equity
-478.1%Danger
Operating Margin
45.3%Very Safe
Gross Margin
57.5%Very Safe
Profit Margin Stability
StableSafe

Dividend Track Record

Very Safe
Dividend Streak
Aristocrat (25+ yrs)Very Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
7.3%Safe
Earnings Stability
GrowingVery Safe

About McDonald's Corporation

McDonald's Corporation is the world's largest restaurant owner-operator, owning, operating, and franchising McDonald's branded restaurants in the United States and over 115 international markets. Founded in 1940 and headquartered in Chicago, Illinois, the company offers a core menu of hamburgers, cheeseburgers, chicken sandwiches, fries, shakes, desserts, soft drinks, coffee, and breakfast items, alongside limited-time promotions to drive customer interest. McDonald's pioneered the franchise model, deriving approximately 60% of its revenue from royalty fees and lease payments, with the balance from company-operated stores across its U.S., international operated markets, and developmental/licensed segments. In 2024, it achieved systemwide sales of $131 billion across more than 43,000 locations, underscoring its dominant position in the global quick-service restaurant industry within the consumer services sector. Employing around 150,000 people, McDonald's continues to emphasize operational efficiency, value offerings, and menu innovation to maintain its market leadership.

Dividend Overview

Dividend Yield

2.63%

Annual Dividend

$7.26

Frequency

Quarterly

Payout Ratio

59.85%

FCF Payout Ratio

71.19%

Stock Price

$275.75

52-Week Range

$274.83 $341.75

Dividend History (2016–2025)

MCD annual dividend per share and yield history

Earnings & Profitability

MCD earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

March 3, 2026

Last Payment Date

March 17, 2026

Dividend Growth

3-Year Dividend CAGR

8.20%

5-Year Dividend CAGR

7.30%

10-Year Dividend CAGR

7.62%

3-Year Total Growth

26.68%

5-Year Total Growth

42.26%

10-Year Total Growth

108.43%

Dividend Aristocrat (25+ yrs)

This company has increased its dividend for 25+ consecutive years.

Income Calculator

MCD Dividend Calculator

Total Investment

$27,575.00

Annual Income

$726.00

Quarterly Income

$181.50

Monthly Income

$60.50

Similar Dividend Stocks

StockYield5Y CAGRPrice
McDonald's Corporation (MCD) logo
MCD
2.63%7.30%$275.75
Chipotle Mexican Grill, Inc. (CMG) logo
CMG
0.00%N/A$32.49
Domino's Pizza Inc. (DPZ) logo
DPZ
2.31%17.41%$323.48
Darden Restaurants, Inc. (DRI) logo
DRI
3.06%37.50%$196.23
Starbucks Corporation (SBUX) logo
SBUX
2.35%7.84%$104.93
Yum! Brands, Inc. (YUM) logo
YUM
1.90%8.60%$151.95

Frequently Asked Questions

What is MCD's current dividend yield?
McDonald's Corporation (MCD) currently has a dividend yield of 2.63%, based on a stock price of $275.75 and an annual dividend of $7.26.
When is MCD's next dividend payment date?
MCD's next ex-dividend date is 2026-03-03 and the next payment date is 2026-03-17. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does MCD pay in dividends per year?
McDonald's Corporation paid $7.17 per share in annual dividends in 2025. The dividends are paid quarterly.
Has MCD been increasing its dividend?
Yes, McDonald's Corporation is a Dividend Aristocrat (25+ yrs). Its dividend has grown at a 5-year CAGR of 7.30%, a 3-year CAGR of 8.20% and a 10-year CAGR of 7.62%.
Is MCD's dividend safe?
McDonald's Corporation has a payout ratio of 59.85%. Its free cash flow payout ratio is 71.19%. A payout ratio below 60% is generally considered sustainable.
How is MCD's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates McDonald's Corporation's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for consumer cyclical companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

Track MCD Dividends with OnlyDividends

What will MCD actually pay you after taxes? Track every payout, get notified on payment dates, and stop guessing.

This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.