Arcos Dorados Holdings Inc.
ARCOConsumer Cyclical · Stock · quarterly payer
Forward Yield
3.52%
Annual Dividend
$0.28
Payout Ratio
21%
5-Yr Growth
3.7%
Ex-Date
Sep 21, 2026
Frequency
Quarterly
Summary
As of August 2026, Arcos Dorados Holdings Inc. (ARCO) yields 3.52% ($0.28 per share annually), with a blended fair-value estimate of $9.62 — +21% upside, so it screens as undervalued. Dividend safety grade: C (55/100).
Is ARCO a good dividend stock?
MixedArcos Dorados Holdings Inc. (ARCO) pays a quarterly dividend yielding 3.52% ($0.28/yr), with 0 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
- Comfortable payout ratio (21%)
- 55% total price return over 5 years
Risks
- Cut its dividend in 2019
Key Data
- Dividend Yield
- 3.52%
- Payout Ratio
- 21%
- Annual Dividend
- $0.28
- 5-Yr Avg Growth
- 3.7%
- Ex-Dividend Date
- Sep 21, 2026
- Years of Growth
- 0
- Frequency
- quarterly
- Beta
- 0.50
- Market Cap
- $1.7B
- P/E Ratio
- 6.5
- 5-Yr Total Return
- 55%
- 52-Week Range
- —
- Dividend Safety
- C · 55/100
- Ever Cut?
- Yes (2019)
Frequently Asked Questions
ARCO Price — Last 12 Months
Daily close
Price Return
1 Year
+18%
3 Years
-16%
5 Years
+55%
52-Week Range
—
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is ARCO worth?
Undervaluedlow confidenceOur blended fair-value estimate for Arcos Dorados Holdings Inc. is $9.62 per share, versus a market price of $7.96. That implies 21% of upside — a margin of safety of about 17%.
Fair Value
$9.62
Current Price
$7.96
Upside
+21%
Margin of Safety
17%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Assumptions: 7.0% discount rate (CAPM), 16.4% stage-1 growth, 2.5% terminal growth, $1.23 EPS, $0.28 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
ARCO Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 22, 2026 | — | $0.0700 | regular |
| Mar 30, 2026 | — | $0.0700 | regular |
| Dec 22, 2025 | — | $0.0600 | regular |
| Sep 23, 2025 | — | $0.0600 | regular |
| Jun 24, 2025 | — | $0.0600 | regular |
| Mar 24, 2025 | — | $0.0600 | regular |
| Dec 23, 2024 | — | $0.0600 | regular |
| Sep 24, 2024 | — | $0.0600 | regular |
| Jun 25, 2024 | — | $0.0600 | regular |
| Mar 22, 2024 | — | $0.0600 | regular |
| Dec 21, 2023 | — | $0.0400 | regular |
| Sep 22, 2023 | — | $0.0500 | regular |
| Jun 22, 2023 | — | $0.0500 | regular |
| Mar 24, 2023 | — | $0.0500 | regular |
Income Calculator
At $0.28 / yr per share
