McDonald's Corporation
MCDMcDonald's Corporation (MCD) is a Consumer Cyclical company that currently yields 2.68% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $242.65 and the overvaluation threshold at $327.71. 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
Distance to undervalued
Waiting for a better entry
Needs about 11.5% downside to reach the Weiss buy zone
Undervaluation starts near $242.65, where the annual dividend would imply roughly 3.03% yield. That is 0.35% above today's yield.
Buy-zone price
$242.65
Target yield
3.03%
Research checklist
What to clear before buying the yield
Updated Aug 12, 2026
Dividend durability
51YLong dividend history supports a deeper look.
Earnings payout
60%Earnings coverage leaves room for noise.
Cash payout
84%Free cash flow coverage supports the payment.
Dividend growth
7.3%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-08-11 → 2026-08-12
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
McDonald's Corporation is trading at a fair valuation relative to its dividend history.
Current yield 2.7% vs historical max 4.5% (60% 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 neutral here: quality has to do more of the work than entry price.
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
$288
Year 10 Income
$764
Yield on Cost
8.05%
Total Income
$4,843
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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Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗MCD Dividend Quality Score
Quality Score
Average
Key Metrics
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