Basis: Latest reported fiscal year. Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 2.78%.
YIELD ON COST (YOC)
2.78%
MCD now pays $7.35 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(2016-07-19) | $126.50 | 5.81% |
| 5 years ago(2021-07-27) | $246.35 | 2.98% |
| 3 years ago(2023-07-28) | $294.03 | 2.50% |
| 1 year ago(2025-07-22) | $299.17 | 2.46% |
| Buying today(at $264.76) | $264.76 | 2.78% |
Projection: starting from today's 2.78% yield, assuming the dividend keeps compounding at its historical 7.3% rate. Boards set dividends each year, so actual figures will differ.
Today
2.78%
In 3 years
3.79%
In 5 years
4.67%
In 10 years
7.85%
Try your own purchase price, dividend and growth rate for McDonald's Corporation (MCD).
Starting Yield
2.78%
Ending YOC
8.00%
Year 15 Dividend
$21.18
Cum. Dividends Recd.
$203.00
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $7.35 | N/A | 2.78% | $0.00 |
| Year 1 | $7.89 | +7.31% | 2.98% | $7.89 |
| Year 2 | $8.46 | +7.31% | 3.20% | $16.35 |
| Year 3 | $9.08 | +7.31% | 3.43% | $25.43 |
| Year 4 | $9.75 | +7.31% | 3.68% | $35.18 |
| Year 5 | $10.46 | +7.31% | 3.95% | $45.64 |
| Year 6 | $11.22 | +7.31% | 4.24% | $56.86 |
| Year 7 | $12.04 | +7.31% | 4.55% | $68.91 |
| Year 8 | $12.92 | +7.31% | 4.88% | $81.83 |
| Year 9 | $13.87 | +7.31% | 5.24% | $95.70 |
| Year 10 | $14.88 | +7.31% | 5.62% | $110.58 |
| Year 11 | $15.97 | +7.31% | 6.03% | $126.55 |
| Year 12 | $17.14 | +7.31% | 6.47% | $143.69 |
| Year 13 | $18.39 | +7.31% | 6.95% | $162.08 |
| Year 14 | $19.74 | +7.31% | 7.45% | $181.82 |
| Year 15 | $21.18 | +7.31% | 8.00% | $203.00 |
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
