McDonald's Corp. said Thursday it raised its quarterly dividend by 6% to 94 cents a share from 89 cents a share. The new dividend will be payable Dec. 15 to shareholders for record Dec. 1. Based on Wednesday's closing price for the fast-food giant's stock of $115.18, the new annual dividend implies a dividend yield of 3.26%, compared with the aggregate dividend yield for the Dow Jones Industrial Average of 2.45%, according to FactSet. McDonald's said 2016 is the final year of its three-year plan to return $30 billion to shareholders. Through August, the company had returned $26 billion to shareholders, and the new quarterly dividend represents a payout of about $800 million. The company expects to complete the return plan by the end of the year. The stock, which ticked up 0.1% in premarket trade, has lost 2.5% year to date, while the Dow has gained 5.3%.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.