McDonald's Corporation

MCD
Consumer CyclicalDividend Aristocrat
$275.60
2.63%Fair Value

McDonald's Corporation (MCD) is a Consumer Cyclical company that currently yields 2.63% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $246.40 and the overvaluation threshold at $332.29. McDonald's Corporation holds a quality score of 54/100 (Average), reflecting 9 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. $246.40Overval. $332.29
Price
Undervalued band
Overvalued band

Why Now?

McDonald's Corporation is trading at a fair valuation relative to its dividend history.

Current yield 2.6% vs historical max 2.9% (89% of maximum).

9 years of uninterrupted dividends.

Conservative payout ratio of 60%.

MCD Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$283

Year 10 Income

$746

Yield on Cost

7.86%

Total Income

$4,743

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

MCD Dividend Quality Score

Quality Score

54/ 100

Average

Payout Ratio12/25
Dividend Streak12/25
Growth (CAGR 5Y)15/20
Yield vs History15/15
FCF Coverage0/15

Key Metrics

Current Price$275.60
Annual Dividend$7.26
Current Yield2.63%
Yield — Max (10Y)2.95%
Yield — Min (10Y)2.18%
Undervalued Below$246.40
Overvalued Above$332.29
Payout Ratio59.85%
CAGR Dividend 5Y7.3%
CAGR Dividend 10Y—
Years No Cut9y
9
consecutive years of dividend growth

In-depth analysis

→ MCD Dividend Analysis Article

Collections

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