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Why the dividend investor may take a look at NYSE:MCD.

By Mill Chart

Last update: Dec 21, 2023

MCDONALD'S CORP (NYSE:MCD) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:MCD scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Understanding NYSE:MCD's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:MCD scores a 7 out of 10:

  • Compared to an average industry Dividend Yield of 3.98, MCD pays a better dividend. On top of this MCD pays more dividend than 83.94% of the companies listed in the same industry.
  • On average, the dividend of MCD grows each year by 8.08%, which is quite nice.
  • MCD has paid a dividend for at least 10 years, which is a reliable track record.
  • MCD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
  • The dividend of MCD is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Analysis for NYSE:MCD

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MCD has earned a 6 out of 10:

  • MCD has an Altman-Z score of 5.17. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of MCD (5.17) is better than 92.70% of its industry peers.
  • Looking at the Debt to FCF ratio, with a value of 5.18, MCD is in the better half of the industry, outperforming 75.18% of the companies in the same industry.
  • Looking at the Current ratio, with a value of 1.71, MCD is in the better half of the industry, outperforming 76.64% of the companies in the same industry.
  • The Quick ratio of MCD (1.70) is better than 80.29% of its industry peers.

Profitability Examination for NYSE:MCD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MCD scores a 9 out of 10:

  • The Return On Assets of MCD (16.00%) is better than 93.43% of its industry peers.
  • MCD's Return On Invested Capital of 19.34% is amongst the best of the industry. MCD outperforms 91.24% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCD is significantly above the industry average of 10.04%.
  • The last Return On Invested Capital (19.34%) for MCD is above the 3 year average (15.49%), which is a sign of increasing profitability.
  • The Profit Margin of MCD (33.31%) is better than 98.54% of its industry peers.
  • In the last couple of years the Profit Margin of MCD has grown nicely.
  • MCD has a Operating Margin of 46.01%. This is amongst the best in the industry. MCD outperforms 99.27% of its industry peers.
  • In the last couple of years the Operating Margin of MCD has grown nicely.
  • MCD's Gross Margin of 57.24% is fine compared to the rest of the industry. MCD outperforms 63.50% of its industry peers.
  • MCD's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of MCD for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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MCDONALD'S CORP

NYSE:MCD (5/21/2024, 7:04:00 PM)

After market: 266.27 +0.4 (+0.15%)

265.87

-2 (-0.75%)

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