McDonald's Increases Quarterly Dividend 10%

McDonald's Corporation : McDonald's Increases Quarterly Dividend 10%

09/20/2012 | 05:31pm US/Eastern

   By Nathalie Tadena 
 

McDonald's Corp. (MCD) raised its quarterly dividend 10%, a shareholder-friendly move that demonstrates the company's confidence in its long-term strength.

The seven-cent increase brings the quarterly payout by the world's largest fast-food chain to 77 cents a share. The dividend carries a yield of 3.3%, based on Thursday's closing price.

The increase will cost McDonald's about $282.4 million more a year, based on the number of shares outstanding as of June 30. The company had $2.48 billion in cash and cash equivalents at the end of its second quarter.

McDonald's has raised its dividend every year since paying its first dividend in 1976.

The company has touted the efficiency of its global operations and diverse menu for returning a strong profit margin, but lately, higher costs for food, labor, occupancy and business investment are hurting its profitability.

In July, McDonald's reported second-quarter earnings fell 4.5% as global economic troubles pressured the company's margin and consumer confidence becomes an issue world-wide.

Shares closed at $93.15 and were unchanged after hours. The stock is up 5.1% over the past three months.