McDonald's Corporation (MCD) will increase its quarterly dividend by 14.9 percent to $1.16 per share in 2018. This marks the 42nd consecutive year of annual dividend increases for the company and is MCD's biggest dividend hike in the last ten years.

The next dividend is payable on December 17, 2018 to shareholders of record at the close of business on December 3, 2018. This brings the fourth quarter dividend payout to nearly $900 million. The new annual dividend of $4.64 per share yields 2.8% at a stock price of $165.30.

McDonald's President and Chief Executive Officer Steve Easterbrook said, "Our substantial cash flow enables us to invest in the business to drive growth under our Velocity Growth Plan. We are confident that the Plan will deliver sustained, long-term profitability for our system and our shareholders, which is reflected in today's increases in our dividend and three-year cash return to shareholders target."

McDonald's Corporation (McDonald's) operates and franchises McDonald's restaurants with locations in over 100 countries. Over 90% of McDonald's restaurants worldwide are owned and operated by independent local business men and women.  The Company's restaurants serve a locally relevant menu of food and drinks sold at various price points. McDonald's has paid a dividend every year since 1976.