This means revenues are now recorded by the franchise owners and not McDonalds’s however the company earns royalties and rent payments from each store. Measuring Dividend Payout Ratio of McDonald’s Stock, Stock’s Valuation versus S&P 500 and Consumer Discretionary (XLC), Kimberly Clark Stock, a 47 Year Dividend Aristocrat, General Dynamics Stock, a 28 Year Dividend Aristocrat, McDonald’s Stock, a 40 Year Dividend Aristocrat – Dividend Scholar – Punch Bill, Nasdaq Dividend Achievers Stocks (Download Excel Spreadsheet), Roper Technologies Stock, a 27 Year Dividend Aristocrat, Medtronic Stock, a 42 Year Dividend Aristocrat, Stanley Black and Decker Stock, a 52 Year Dividend Aristocrat, McDonald’s Stock, a 40 Year Dividend Aristocrat. JavaScript needs to be enabled to complete CAPTCHA. Operating income stood at $9.069 billion and operating margin equaled 43%. For full year 2019, McDonald’s generated $21.077 billion in revenues and earned a net income of $6.025 billion. It is important to note that growth in the dividend has been volatile. All quotes delayed a minimum of 15 minutes. In 1st Quarter, 2020 earnings release, McDonald’s reported revenues of $4.714 billion and net income of $1.106 billion, implying a net profit margin of almost 24%. McDonald’s generated $21.077 billion in sales for 2019. Sep 19, 2019, 18:30 ET. For fiscal 2019, McDonald’s paid out $3.58 billion in dividends. Trading on the New York Stock Exchange, McDonald’s Stock has a market capitalization of $146.6 billion and pays a 2.5% dividend yield. As mentioned above, the dividend growth rate surged to 60% in 2003, almost 50% in 2006 and 2007 during the housing boom years in the United States. After completing the CAPTCHA below, you will immediately regain access to Free cash flow is calculated from the statement of cash flows, and is not artificially modified using accounting rules or non-cash expenses like depreciation, amortization, fair value revaluations, etc. Forward Price to Earnings Ratio of 35.6 times earnings making this a very expensive stock to own at current prices. The company’s board declared a quarterly dividend of $1.25 a share, up from $1.16. Since the company is investing for the future, results will pay off in the future as well. In general, profits from business operations can be allocated to retained earnings or paid to shareholders in the form of dividends or stock buybacks. In fact, McDonald’s can grow the dividend for many years in to the future. During the technology bubble of 2001, the dividend growth rate shrunk to low single digits. Management last raised its dividend by 8% from $1.16 per share in September 2019 to $1.25 per share in December 2019. High debt load of $34.2 billion leaving the company highly exposed to interest rate changes and currency fluctuations. Management has grown dividends from a modest 5 cents a share in 1990 to $4.73 as of 2019.