McDonald’s Corporation (NYSE:MCD) will release its fourth-quarter financial results, before the opening bell, on Monday, Feb. 10, 2025.
Analysts expect the Chicago-based company to report quarterly earnings at $2.86 per share, down from $2.95 per share in the year-ago period. McDonald’s projects quarterly revenue of $6.48 billion, compared to $6.41 billion a year earlier, according to data from Benzinga Pro.
On Jan. 21, Cognizant Technology Solutions Inc. (NASDAQ:CTSH) and McDonald’s have extended their partnership with a multi-year renewal.
With the recent buzz around McDonald’s, some investors may also be eyeing potential gains from the company’s dividends. Currently, McDonald’s offers an annual dividend yield of 2.41%, a quarterly dividend amount of $1.77 per share (7.08 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $249,323 or around 847 shares. For a more modest $100 per month or $1,200 per year, you would need $49,747 or around 169 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($7.08 in this case). So, $6,000 / $7.08 = 847 ($500 per month), and $1,200 / $7.08 = 169 shares ($100 per month).
View more earnings on MCD
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
MCD Price Action: Shares of McDonald’s gained 1.9% to close at $294.36 on Thursday.
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