McDonald's Corporation

MCD
Consumer CyclicalDividend King
$232.04
3.21%Undervalued

McDonald's Corporation (MCD) is a Consumer Cyclical company that currently yields 3.21% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $247.40 and the overvaluation threshold at $331.72. McDonald's Corporation holds a quality score of 57/100 (Average), reflecting 51 consecutive years of dividend growth with a 60% payout ratio. The 5-year dividend CAGR stands at 7.3%.

MCD Dividend Yield History — Weiss Valuation

Underval. $247.40Overval. $331.72

Distance to undervalued

In undervalued territory

Price sits 6.2% below the Weiss buy zone ceiling

The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.

Zone ceiling

$247.40

Current yield

3.21%

Research checklist

What to clear before buying the yield

Updated Oct 1, 2026

Dividend durability

51Y

Long dividend history supports a deeper look.

Earnings payout

60%

Earnings coverage leaves room for noise.

Cash payout

87%

Confirm cash conversion and one-off effects.

Dividend growth

7.3%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-09-30 → 2026-10-01

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

McDonald's Corporation is trading near its historical undervaluation band.

Current yield 3.2% vs historical max 4.5% (72% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 60%.

What matters now

Read the signal before the headline yield

Valuation is the invitation here: the yield is elevated versus its own history.

The 57/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

MCD Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$344

Year 10 Income

$975

Yield on Cost

10.38%

Total Income

$6,007

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

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MCD Dividend Quality Score

Quality Score

57/ 100

Average

Payout Ratio12/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History10/15
FCF Coverage0/15

Key Metrics

Current Price$232.04
Annual Dividend$7.44
Current Yield3.21%
Yield — Max (10Y)4.47%
Yield — Min (10Y)2.27%
Undervalued Below$247.40
Overvalued Above$331.72
Payout Ratio59.71%
CAGR Dividend 5Y7.3%
CAGR Dividend 10Y7.6%
Years No Cut14y
Historically elevated yield

MCD has an undervalued Weiss signal. Review the risks and current trading costs before acting.

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51
consecutive years of dividend growth