McDonald's raised its quarterly dividend by 4% to $1.93 per share, or $7.72 annually, extending its streak of consecutive annual increases to 50 years. At recent share prices the payout yields roughly 3.1%, above the company's recent historical yield levels. The streak is backed by cash generation rather than accounting earnings: in 2025 McDonald's produced $10.6 billion in operating cash flow and $7.2 billion in free cash flow, up 8% from the prior year, though the free-cash-flow payout ratio sits near 68%. The latest increase is below the company's longer-term dividend growth rate, with the trailing growth rate at roughly 5%, suggesting future raises may stay measured unless free cash flow keeps growing. The dividend case therefore rests less on rapid income growth and more on McDonald's ability to keep generating dependable free cash flow.
McDonald’s CorporationMcDonald's raised its quarterly dividend 4% to $1.93, extending its 50-year streak, backed by strong free cash flow.
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