SmarterDividends
ARCO

Arcos Dorados Holdings Inc.

ARCO

Consumer Cyclical · Restaurants · Stock · quarterly payer

$7.95

Fairly valued · +1% Add to Portfolio

Forward Yield

3.52%

Annual Dividend

$0.28

Payout Ratio

21%

5-Yr Growth

3.7%

Ex-Date

Dec 23, 2026

Frequency

Quarterly

Key facts about ARCO's dividend

Data as of · Source: SmarterDividends data

  • As of Oct 18, 2026, Arcos Dorados Holdings Inc. (ARCO) has a forward dividend yield of 3.52%, based on an annual dividend of $0.28 per share and a share price of $7.95.
  • As of Oct 18, 2026, ARCO's dividend safety grade from SmarterDividends is C (60 out of 100), which rates the dividend as borderline.
  • ARCO last cut its regular dividend in 2019.
  • ARCO's next ex-dividend date is Dec 23, 2026, with payment on Dec 29, 2026. Shares must be owned before that date to receive the dividend.
  • As of Oct 18, 2026, ARCO pays out 21% of its trailing 12-month earnings as dividends (its payout ratio).
  • ARCO's dividend has grown at an average rate of 3.7% a year over the past five years.
  • As of Oct 18, 2026, ARCO's 3.52% yield is 45% above its five-year average yield of 2.43%.
  • As of Oct 18, 2026, SmarterDividends' blended fair-value estimate for ARCO is $8.03 per share, 1% above the $7.95 share price, so ARCO screens as fairly valued.
  • Arcos Dorados Holdings Inc. (ARCO) pays its dividend quarterly, 4 times a year.
  • Arcos Dorados Holdings Inc. (ARCO) has raised its regular dividend 4 times and cut it 2 times across the 40 payments on record since 2011. Its most recent change was a 16.7% increase to $0.0700 per share, going ex-dividend on Mar 30, 2026. The last cut went ex-dividend on Mar 25, 2022.
Cite this page

SmarterDividends, "ARCO Dividend: Yield, Safety Grade & Next Ex-Date," updated Oct 18, 2026, https://smarterdividends.com/stocks/ARCO

Summary

As of Oct 18, 2026, Arcos Dorados Holdings Inc. (ARCO) yields 3.52% ($0.28 a year per share) and has a dividend safety grade of C (60/100).

Is ARCO a good dividend stock?

Yes, with caveats

Arcos 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. It's a solid income payer, but check the caveats below before buying.

Advantages

  • Comfortable payout ratio (21%)
  • 62% 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
Dec 23, 2026
Years of Growth
0
Frequency
quarterly
Beta
0.49
Market Cap
$1.7B
P/E Ratio
6.5
5-Yr Total Return
62%
52-Week Range
$6.67 – $9.75
Dividend Safety
C · 60/100
Ever Cut?
Yes (2019)

ARCO dividend raises and cuts

Arcos Dorados Holdings Inc. (ARCO) has raised its regular dividend 4 times and cut it 2 times across the 40 payments on record since 2011. Its most recent change was a 16.7% increase to $0.0700 per share, going ex-dividend on Mar 30, 2026. The last cut went ex-dividend on Mar 25, 2022.

Ex-dateChangeOld → newMove
Mar 30, 2026Raise$0.0600 → $0.0700+16.7%
Mar 22, 2024Raise$0.0500 → $0.0600+20.0%
Mar 24, 2023Raise$0.0400 → $0.0500+25.0%
Mar 25, 2022Cut$0.0500 → $0.0400−20.0%
Apr 6, 2020Raise$0.0300 → $0.0500+66.7%
Aug 8, 2019Cut$0.0500 → $0.0300−40.0%
Every ARCO payment →Download every raise and cut (CSV)
ARCO ex-dividend date & scheduleNext ex-date Dec 23, 2026 · full ex-dividend historyView →ARCO dividend historyEvery payment, totals by year, raises and cutsView →

Frequently Asked Questions

Is ARCO a good dividend stock?

Yes, with caveats. Arcos 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. It's a solid income payer, but check the caveats below before buying.

Is ARCO undervalued?

Based on a blend of discounted cash flow, a dividend-discount model and an earnings-multiple estimate, ARCO's fair value is about $8.03 versus a $7.95 share price — so it looks fairly valued (+1% vs. fair value).

Is ARCO's dividend safe?

ARCO has a dividend-safety grade of C (60/100), based on its payout coverage, free-cash-flow, 0-year growth streak, a dividend cut in 2019, debt and yield-versus-history.

What is ARCO's fair value?

Our blended fair-value estimate for ARCO is about $8.03 per share, roughly 1% above the current $7.95 price — combining a discounted cash flow, a dividend-discount model and an earnings multiple.

Is ARCO a buy, hold, or sell?

We don't issue formal ratings, but on the data ARCO screens as "yes, with caveats" and fairly valued. Arcos 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. It's a solid income payer, but check the caveats below before buying. This is research for your own analysis, not investment advice.

Will ARCO cut its dividend?

ARCO earns a dividend-safety grade of C (60/100), and has cut its dividend before (last in 2019). A higher score means lower cut risk based on payout coverage, cash flow and history — but no score guarantees a dividend.

Does ARCO pay a dividend?

Yes. Arcos Dorados Holdings Inc. pays a quarterly dividend of about $0.28 per share annually, a forward yield of roughly 3.52%.

What is ARCO's dividend yield?

As of Oct 18, 2026, ARCO's forward dividend yield is 3.52%, based on a $0.28 annual dividend and a $7.95 share price.

What is ARCO's dividend per share?

As of Oct 18, 2026, ARCO pays $0.28 per share per year, distributed on a quarterly basis.

What is ARCO's dividend payout ratio?

As of Oct 18, 2026, ARCO's payout ratio is 21% of trailing 12-month earnings — a comfortable level that leaves room to keep raising the dividend.

How many years has ARCO grown its dividend?

ARCO does not currently have a long dividend-growth streak on record.

When is the next ARCO ex-dividend date?

As of Oct 18, 2026, the next ex-dividend date on record for ARCO is Dec 23, 2026.

Income Calculator

At $0.28 / yr per share

Per payment (quarterly)$7.00
Annual$28.00
Monthly avg$2.33

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