One of the best dividend growth stocks to own for decades has been McDonald’s (NYSE:MCD). The fast food giant has a solid business that enables it to consistently generate strong profits and cash flow, which helps it to pay a recurring dividend and also increase it over the years. For investors, this gives them plenty of incentive to stay invested over the long haul as it means their dividend income is likely to increase.
On. Oct 22, the Chicago-based company announced that its new quarterly dividend will be $1.86, which is a 5% increase over what it was paying previously. And with the increase, the company has now increased its streak of dividend increases to 49 straight years. Unless something goes drastically wrong, it seems pretty certain that next year it’ll hit the illustrious 50-year mark and become a Dividend King.
With the increase in the dividend, the stock is now paying investors $7.44 per share over the course of an entire year. That translates into a yield of approximately 2.4%, based on its share price of around $300.
This year, McDonald’s stock has risen by a little under 6%, as it has remained a stable and consistent stock to own. Demand has remained relatively strong despite inflation and worsening economic conditions for many of its customers. While the dividend and stability might be the main reasons to invest in the stock, it has also helped investors achieve gains as well; in five years, McDonald’s stock is up close to 34%.
Whether you want dividends or just a safe stock to buy and hold, McDonald’s makes for an excellent option.
