McDonald's Corporation (MCD) will increase its quarterly dividend by 3.2 percent to $1.29 per share in 2020. This comes after a 7.8 percent increase to $1.25 per share announced in 2019 by the Dividend Aristocrat. This year will mark the 44th consecutive year of dividend increases for the restaurant company.

The new quarterly dividend of $1.29 per share for MCD is equivalent to $5.16 annually and yields 2.3% at a stock price of $225.61.

In the press release dated October 8, 2020 McDonald's President and Chief Executive Officer Chris Kempczinski stated: "Today's dividend increase reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value while still investing in our people and the business."

The company also mentions that while current year business results have been impacted by the COVID-19 pandemic, the pace of recovery paired with the Company's strong financial position support this increase to the dividend while still giving the Company the ability to invest in the business. 

If we include this new dividend hike McDonald's will pay its shareholders an annual dividend of $3.84 billion. This year's dividend increase just announced is the smallest in more than a decade for the company with the average 5 year annual dividend growth rate dropping from 8.0 percent to 7.7 percent.

McDonald's Corporation (McDonald's) operates and franchises McDonald's restaurants with locations in over 100 countries. Over 90% (approximately 93% as of October 8, 2020: source company press release) of McDonald's restaurants worldwide are owned and operated by independent local business men and women.  The Company's restaurants serve a locally relevant menu of food and drinks sold at various price points. McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for over 40 years consecutively since paying its first dividend in 1976.