McDonald's (MCD) Juices Dividend

McDonald's Corp. (NYSE: MCD) announced Thursday that it is raising its quarterly dividend, as the company has done every year since it paid its first dividend in 1976. The world’s largest fast food hamburger chain said that it will boost its quarterly dividend 11 percent to 61 cents, and will be equivalent to $2.44 per share annually. The new dividend yield will be 3.3 percent. "With today's announced dividend increase, we expect the 2010 total cash returned to shareholders to be approximately $5 billion, split between dividends and share repurchases," McDonald's Chief Executive Officer Jim Skinner said. The dividend will be paid on December 15 to shareholders of record on December 1, while the new dividend payout will be approximately $650 million in the fourth quarter. “Our ongoing financial performance reflects the strength of the McDonald’s system and resilience of our Plan to Win,” Skinner added. “We remain committed to maintaining financial discipline and enhancing shareholder value. Our first priority is to reinvest in our business by allocating capital where we expect to drive sales and cash flow, generating strong returns. After these investment opportunities, we expect to return all of our free cash flow to shareholders over the long term through dividends and share repurchases.” Shares of McDonald’s are down 38 cents to $74.75 in premarket trade on Thursday.... Read more

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