McDonald's Corporation's (MCD) Dividend Policy: A Signal of Financial Discipline

McDonald’s Corporation (NYSE:MCD) is included among the 12 Best Dividend Aristocrat Stocks to Invest in Right Now.

McDonald’s Corporation (NYSE:MCD) is a fast food holding company. About 90% of these are owned and operated by franchise owners. A few years back, the company converted a large majority of its restaurants in China and other global markets to franchises, employing a more asset-light business model that minimized the fixed costs associated with operating company stores. It also owns much of the real estate on which its franchise restaurants sit, and can charge rent to those franchises.

Despite pressures on McDonald’s Corporation (NYSE:MCD) from declining consumer spending, it has proven to be a steady performer due to its strong brand recognition, prime location, and powerful marketing. The stock is off to a solid start this year, running up over 4% by the beginning of 2025.

McDonald’s Corporation (NYSE:MCD) is also preferred by dividend investors on account of its dividend growth track record, which spans 48 years. The company pays a quarterly dividend of $1.77 per share and has a dividend yield of 2.32%, as of September 26.

While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.