McDonald's Dividend Increase

By Ferdi S of DivGro
Saturday, October 25, 2025 6:45 PM EDT

Mcdonald'S, Fries, Food, Eating, Junk, Waste, Empty

Image Source: Pixabay


On Oct. 23, 2025, McDonald's (MCD) increased its dividend by 5.08%, from $1.77 to $1.86 per share. The dividend is payable on Dec. 15 to shareholders of record on Dec. 1.

The stock's contribution to my portfolio's projected annual dividend income will increase by $18 to $372. I own 50 shares of McDonald's stock at an average cost basis of $148.63 per share. Following this increase, my yield on cost is 5.01% (the stock's forward yield is 2.43% at $305.79 per share).

Since I opened my position in September 2014, the stock has produced a total return of 135%, including $2,155.13 in dividend income. That's a splendid annualized rate of return of 12.3%.

McDonald's became my portfolio's 10th Home Run stock in January 2018, when the stock doubled my original capital outlay.
 

More By This Author:

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Accenture Dividend Increase
Realty Income Dividend Increase

Disclaimer: I'm not an investment professional or a licensed financial advisor. This article represents my personal views and decisions, which may not be appropriate for other investors. ...

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Mike Faragut • 4 hours ago • Member's comment
Great summary! It’s impressive to see McDonald’s raise its quarterly dividend to $1.86/share as of Dec 15, 2025 (from $1.77) — a ~5% bump. Given their track record of consistent increases, this reinforces their appeal to income-oriented investors. One question: with a forward yield of ~2.43% at current price and a yield-on-cost of 5.01% for the author’s cost basis, how do you view the trade-off between yield and growth potential for this company versus higher-yield alternatives?
FerdiS • 20 minutes ago • Contributor's comment
As mentioned in the article, McDonald's have delivered an annualized return of 12.3% since I opened my position in September 2014. That's more than satisfactory, in my view. I own higher-yielding stocks, such as $MAIN, $MO, and $O. Of the three, only $MAIN is outperforming McDonald's, and only just with an annualized return of 13.6%. On the other hand, I have several low-yield, high-growth positions with annualized returns above 25% (see https://www.divgro-2-0.com/divgro-portfolio/)