Mickey D's is boosting its quarterly dividend by 11% to $0.61 per share, which will add up to $2.44 per share on an annual basis. McDonald's dividend yield is now 3.2%.
The fast food behemoth's shareholders are surely smiling right now. The stock's up 39% in the last year alone, and that dependable dividend is a tasty added bonus. And that payout is one reason my Foolish colleague Jim Royal called the stock a dividend play for a lifetime. McDonald's beats the conventional wisdom that dividend payers are necessarily slow growers.
There are of course other solid dividend payers out there in the restaurant space, like rivals Starbucks
Investors shouldn't bet against McDonald's. It's a far superior stock to longtime struggler Wendy's/Arby's
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Alyce Lomax owns shares of Starbucks. The Fool has a disclosure policy. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.