MCD - Want $1000 in Dividend Income? Here's How Much You Have to Invest in McDonald's Stock.
2024-06-29 04:00:00 ET
There's nothing like a good dividend stock you can just tuck away in your portfolio and forget about. McDonald's (NYSE: MCD) is that kind of the stock. The company's iconic fast food restaurants are go-to spots for consumers all over the world. And for investors, the stock can be a go-to option for dividends, too.
McDonald's pays a quarterly dividend of $1.67 per share, which totals $6.68 over the course of a full year. And with the stock trading at around $257 as of this writing, that means you're collecting an above-average yield of 2.6% (the S&P 500 average yield is 1.3%).
To ensure you're getting $1,000 in dividend income from the stock, you would need to invest approximately $38,500 in McDonald's. The good news is that even if you can't afford to invest that much in the restaurant stock right now, your annual dividend payouts could still rise to $1,000 over time because McDonald's is a dividend growth stock. In fact, it has raised its payout for 47 consecutive years, including a 10% bump last October.
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Want $1,000 in Dividend Income? Here's How Much You Have to Invest in McDonald's Stock.