McDonald’s raises quarterly cash dividend 15 percent

OAK BROOK — McDonald’s board of directors declared a quarterly cash dividend of 70 cents per share, a 15 percent increase over the company’s previous quarterly dividend rate.

The increase brings the fourth quarter dividend payout to over $700 million.

“Today’s announced dividend increase brings our 2011 expected total cash return to shareholders to about $6 billion through dividends and share repurchases,” McDonald’s Chief Executive Officer Jim Skinner said.

“McDonald’s commitment to operations excellence and financial discipline under the Plan to Win, as well as our ongoing business momentum, continues to produce strong financial results,” Skinner added. “Our philosophy on the use of capital remains unchanged with our first priority being to reinvest in our business to drive sales and cash flow, while generating strong returns.”

McDonald’s has raised its dividend each and every year since paying its first dividend in 1976. The new quarterly dividend of 70 cents per share is equivalent to $2.80 annually.