Investing in McDonald’s stock can be a lucrative way to earn passive income. With the company’s strong brand recognition and global presence, McDonald’s has been a staple in the fast-food industry for decades. By owning shares of McDonald’s stock, investors have the opportunity to benefit from the company’s consistent dividend payments.
McDonald’s Corporation (NYSE: MCD) operates and franchises restaurants under the McDonald’s brand in the United States and internationally. The company is set to report its Q4 2024 earnings on Feb. 3, 2025. Wall Street analysts expect McDonald’s to post an EPS of $2.94, with quarterly revenue expected to be $6.62 billion. The 52-week range of McDonald’s stock price has been between $243.53 to $317.90.
One key aspect of investing in McDonald’s stock is the dividend yield. McDonald’s dividend yield is currently at 2.35%, with the company paying $7.08 per share in dividends over the last 12 months. This means that for investors looking to earn $100 per month in passive income from McDonald’s dividends, they would need to have an investment value of approximately $51,064, which is equivalent to owning around 170 shares at $300.71 each.
Understanding how dividend yield calculations work is essential for investors. By dividing the desired annual income by the dividend yield percentage, investors can determine the amount of investment needed to generate a specific income. The dividend yield can fluctuate over time based on changes in stock prices and dividend payments.
McDonald’s has a track record of consistently raising its dividend for the last 48 years, making it an attractive option for income-focused investors. By owning shares of McDonald’s stock, investors have the potential to earn a steady income of $100 per month through dividends. Additionally, as the company continues to grow and expand its business, there may be more upside for investors in the future.
In conclusion, investing in McDonald’s stock can be a smart way to earn passive income. With the company’s strong brand, global presence, and consistent dividend payments, McDonald’s offers investors the opportunity to generate steady income over time. By understanding the dividend yield calculations and the potential for dividend growth, investors can make informed decisions about investing in McDonald’s stock for passive income.
