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Analysis of McDonald's Dividend Policy

Acc 340 Discussion 5 I looked into the public trading company of McDonalds. McDonald's pays an annual dividend of $5.16 per share, with a dividend yield of 2.23%. MCD's next quarterly dividend payment will be made to shareholders of record on Tuesday, June 15, 2022. The company has grown its dividend for the last 45 consecu ve years and is increasing its dividend by an average of 9.58% each year. (Sta , 2022) In the three years the dividends have been 2021 ti $5.25, 2020 ti $5.04, and 2019ti $4.73. McDonalds pro ts are at a steady increase so it would only make to pass it on to the shareholders each year. This keeps investors happy and more joining, as McDonalds is always looking for partnerships. Sugges ng that the payments will stop is far from happening in the foreseeable future. Knowing the companies informa on and history, it does not need to reinvest in itself. McDonald's is a household name with almost everyone having tried at some point. As of the quarter ending June 30, 2022 the company's long term debt was 34.5 billion. I do not see a reason to pay down the long term debt since the company itself is pro table and has shown consistent gain with a promising future. The controller took into considera on the value of the company, the debt, pro t, and future to make sure the shareholders equity would match the future goals and needs of the company. The reports the controller uses would include analyzing all nancial reports on health, history, and projec ons. References: D&B hoovers ti login. (n.d.). Retrieved September 29, 2022, from h ps://app.aven on.com/company/7fcd 11tid401ti3f96ti9099ti42cdca5f55e8 Sta , M. B. (2022, September 29). MCD dividend yield 2022, Date & history (McDonald's). MarketBeat. Retrieved September 29, 2022, from h ps://www.marketbeat.com/stocks/NYSE/MCD/dividend/#:~:text=McDonald%27s%20pays%20an %20annual%20dividend%20of%20%245.16%20per,dividend%20by%20an%20average%20of %209.58%25%20each%20year