On Thursday, McDonald's board of directors declared a quarterly cash dividend of 77 cents per share of common stock payable on Dec. 17, 2012, to shareholders of record at the close of business on Dec. 3, 2012.
This represents a 10-percent increase over the company's previous quarterly dividend and brings the fourth quarter dividend payout to approximately $770 million.
CEO Don Thompson said this dividend increase will bring McDonald's 2012 expected total cash return to shareholders to at least $5.5 billion through both dividends and share repurchases.
"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. After these investment opportunities, we expect to return all of our free cash flow to shareholders over the long-term through dividends and share repurchases. Today's dividend increase demonstrates our confidence in the long-term strength of our brand and our commitment to enhancing shareholder value," he said.
McDonald's has raised its dividend every year since paying its first dividend in 1976. The new quarterly dividend of 77 cents per share is equivalent to $3.08 annually.
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