McDonald's Increases Its Dividend to $1

The news from McDonald's (MCD) is good. On September 27, 2006 the stock closed at a six-year high ($39.82) and the company announced that it raised its annual dividend from 67 cents to $1, a 49 percent increase. MCD has significantly increased its dividend every year since 2000 when the annual dividend was 21.5 cents.

For 2006 through 2008 expected strong sales and cash flow will enable MCD to buy back shares and keep increasing its dividend, the company said.

McDonald's is an excellent candidate for a long-term dividend reinvestment portfolio.

Posted September 28, 2006.