Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 2.94%.
YIELD ON COST (YOC)
2.94%
MCD now pays $7.44 per share a year. Measured against the price it actually traded at back then, a long-term holder is earning:
| If you bought | Price then | Yield on cost today |
|---|---|---|
| 10 years ago(2016-09-12) | $115.95 | 6.42% |
| 5 years ago(2021-09-08) | $238.62 | 3.12% |
| 3 years ago(2023-09-11) | $279.76 | 2.66% |
| 1 year ago(2025-09-03) | $316.39 | 2.35% |
| Buying today(at $253.48) | $253.48 | 2.94% |
Projection: starting from today's 2.94% yield, assuming the dividend keeps compounding at 8.1% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.
Today
2.94%
In 3 years
3.71%
In 5 years
4.33%
In 10 years
6.40%
Try your own purchase price, dividend and growth rate for McDonald's Corporation (MCD).
Starting Yield
2.94%
Ending YOC
8.46%
Year 15 Dividend
$21.44
Cum. Dividends Recd.
$205.48
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $7.44 | N/A | 2.94% | $0.00 |
| Year 1 | $7.98 | +7.31% | 3.15% | $7.98 |
| Year 2 | $8.57 | +7.31% | 3.38% | $16.55 |
| Year 3 | $9.19 | +7.31% | 3.63% | $25.75 |
| Year 4 | $9.87 | +7.31% | 3.89% | $35.61 |
| Year 5 | $10.59 | +7.31% | 4.18% | $46.20 |
| Year 6 | $11.36 | +7.31% | 4.48% | $57.56 |
| Year 7 | $12.19 | +7.31% | 4.81% | $69.75 |
| Year 8 | $13.08 | +7.31% | 5.16% | $82.83 |
| Year 9 | $14.04 | +7.31% | 5.54% | $96.87 |
| Year 10 | $15.07 | +7.31% | 5.94% | $111.94 |
| Year 11 | $16.17 | +7.31% | 6.38% | $128.10 |
| Year 12 | $17.35 | +7.31% | 6.84% | $145.45 |
| Year 13 | $18.62 | +7.31% | 7.34% | $164.07 |
| Year 14 | $19.98 | +7.31% | 7.88% | $184.05 |
| Year 15 | $21.44 | +7.31% | 8.46% | $205.48 |
Yield on cost is the dividend yield measured against your original purchase price, not today's price. As a company raises its dividend, the yield on what you actually paid keeps rising even when the market yield holds steady.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
