McDonald's Corporation
MCDMcDonald'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
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
51YLong 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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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
MCD has an undervalued Weiss signal. Review the risks and current trading costs before acting.
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