McDonald's Dividend Hike Bolsters Yield Amid Weaker Sales Outlook
McDonald's stock is gaining attention after the company raised its quarterly dividend to $1.93 per share, marking its 50th consecutive year of increasing payouts. The move supports a yield of about 3 percent at recent prices and suggests that McDonald's continues to prioritize shareholder returns.
The new dividend will be paid on December 15, 2026, to shareholders recorded as of December 1, 2026. GuruFocus notes that the payout ratio stands at 59 percent, which is sustainable given a three-year dividend growth rate of 8.2 percent.
Citi has maintained its 'Buy' rating on McDonald's stock but reduced its price target from $345 to $310, citing weaker comparable sales outlook. However, the bank still sees upside potential for the shares, with the new target implying mid-teens to twenty-plus percent appreciation versus recent trading levels.