Several companies raised distributions last week. The most notable raiser was fast food chain McDonald's (
MCD), which surprised investors with a 10% dividend increase. This marked the 33rd consecutive annual dividend increase for this Oak Brook, Illinois based
dividend aristocrat.
McDonald's Chief Executive Officer Jim Skinner said, "
So far in 2009 we've returned nearly $4.0 billion to shareholders through dividends and share repurchases, bringing total cash returned since the beginning of 2007 to about $15.5 billion. With today's dividend increase, we expect to end the year near the high end of our three-year, $15 billion to $17 billion total cash return target."
Skinner continued, "
This achievement reflects the success of our better, not just bigger strategy, which has helped drive sales, profits and, ultimately, cash from operations. Going forward, our philosophy on our use of capital remains unchanged. Our first priority is to reinvest to grow our business and enhance shareholder value. After these investment opportunities, we expect to return all of our free cash flow over the long term through dividends and share repurchases -- while maintaining a strong financial foundation. Today's dividend increase underscores our confidence in the long-term strength of our business and ongoing commitment to returning cash to shareholders."
The golden arches have definitely weathered the economic storm relatively unscattered, with monthly sales consistently marking comparable gains. I recently added to my position in McDonald's (
MCD), as I believe that the company posseses strong dividend growth characteristics. The company has more than doubled its dividends since 2006.
Several other companies announced increase in distributions:
Lockheed Martin Corporation (LMT), Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services in the United States and internationally., increased its quarterly dividend by 10.50% to 63 cents per share. Lockheed Martin Corporationi has increased its quarterly dividend in each of the past six years. The stock currently yields 2.90%.
Sanderson Farms, Inc.
