About McDonald's Corporation (MCD) — Dividend Analysis 2026
McDonald's is a Dividend Aristocrat with 48+ consecutive years of increases. As the world's most visited fast food brand with 40,000+ locations, its franchise model generates high-margin royalties. MCD's real estate holdings (owning land under many franchised locations) create an additional asset floor supporting long-term value.
Is MCD a good dividend investment in 2026?
MCD offers a 2.27% forward yield with a 72% payout ratio. With a safety score of 90/100, the dividend appears very safe. The 5-year dividend CAGR of 8.5% demonstrates strong, consistent growth that outpaces inflation.
MCD DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your MCD portfolio grows to $21.0K vs $19.6K without reinvestment — a DRIP bonus of $1.3K. This is the compound interest effect in action.
MCD dividend growth history & forecast
MCD has grown its dividend by 10% over the last year and 8.5% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 2.27% — illustrating why dividend growth stocks are powerful long-term wealth builders.
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🌍 MCD Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold MCD.
Gross yield
2.27%
Tax rate
15.00%
After-tax yield
1.93%
Real yield (−CPI)
-0.87%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
2.27%
-0.53%
$227 / yr
🇺🇸 US Taxable (15%) ✓
15%
1.93%
-0.87%
$193 / yr
🇺🇸 US Taxable (20%)
20%
1.82%
-0.98%
$182 / yr
🇬🇧 UK ISA
0%
2.27%
-0.53%
$227 / yr
🇬🇧 UK Taxable
8.75%
2.07%
-0.73%
$207 / yr
🇨🇦 TFSA
0%
2.27%
-0.53%
$227 / yr
🇨🇦 CA Taxable
25%
1.70%
-1.10%
$170 / yr
🇦🇺 Super (pension)
15%
1.93%
-0.87%
$193 / yr
🇦🇺 AU Taxable
30%
1.59%
-1.21%
$159 / yr
🇩🇪 DE Taxable
26.375%
1.67%
-1.13%
$167 / yr
🇫🇷 FR Taxable
30%
1.59%
-1.21%
$159 / yr
Real yield = after-tax yield minus US CPI of 2.8%. Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 MCD Income Goal & Break-Even
Dividend Break-Even
21yr
Years for dividends to repay your full MCD investment price of $294.50/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$3.5K
Lost to inflation (~2.8% CPI)
−$2.5K
Real purchasing power gain
$1.0K
How much do I need to invest in MCD for:
Shares needed
4,227
Capital required
$1,244,852
Monthly income
$2,000
Based on current dividend of $6.68/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 MCD Dividend Payment Schedule
MCD pays quarterly — 4 times per year. Next ex-div: Feb 28, 2026.
Jan
Feb
💰
Mar
Apr
May
💰
Jun
Jul
Aug
💰
Sep
Oct
Nov
💰
Dec
10 shares
$14.19 / payment
$56.78 / year after tax
100 shares
$141.95 / payment
$567.80 / year after tax
1,000 shares
$1419.50 / payment
$5678.00 / year after tax
📊 MCD vs Consumer Discretionary Sector Benchmarks
How MCD compares to typical Consumer Discretionary sector averages.
Dividend YieldMCD: +2.27% vs sector avg 3.00% ↓ Below avg
MCD━━ Consumer Discretionary avg: 3.00%
5Y Dividend CAGRMCD: +8.50% vs sector avg 5.50% ✓ Better
MCD━━ Consumer Discretionary avg: 5.50%
Payout RatioMCD: 72.00% vs sector avg 58.00% ↓ Below avg
MCD━━ Consumer Discretionary avg: 58.00%
⚠️ Disclaimer: All projections are for educational purposes only. Dividend payments, stock prices, and growth rates are estimates based on historical data. Past performance does not guarantee future results. This is not financial advice — consult a qualified financial professional before investing. Data sourced from public financial records and updated regularly.