Wednesday, October 15, 2008

the golden arches raise dividend 33%

This article originally appeared on The DIV-Net on October 1, 2008

Iconic fast food chain McDonalds (MCD) has raised their dividend from $0.375/share to $0.50/share. This represents an increase of 33%. McDonalds' global sales were credited as fuel for the pay out raise. The company has raised its dividend each year since the company began paying one in 1976.

Here is a glance at the company's recent dividend history:
2004-$0.55
2005- $0.67
2006-$1.00
2007-$1.50
2008-$1.625
2009 -$2.00 (estimated)

This represents a compounded annual growth rate of the dividend of 29.5%. The stock is currently trading at around $56 and yielding about 3.6%. This company has really been executing well over the past few years. In March of 2003 the stock actually traded below $13/share. This is certainly one we all wish we had owned for the past 5 years. As a former employee I wish I had been paid in stock instead.

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