Exploring NYSE:MCD's dividend characteristics.

Discover MCDONALD'S CORP (NYSE:MCD)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:MCD showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Examination for NYSE:MCD

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:MCD has been awarded a 7 for its dividend quality:

• MCD's Dividend Yield is rather good when compared to the industry average which is at 3.49. MCD pays more dividend than 82.96% of the companies in the same industry.
• On average, the dividend of MCD grows each year by 8.08%, which is quite nice.
• MCD has been paying a dividend for at least 10 years, so it has a reliable track record.
• MCD has not decreased their dividend for at least 10 years, which is a reliable track record.
• MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.

ChartMill's Evaluation of Health

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:

• An Altman-Z score of 5.24 indicates that MCD is not in any danger for bankruptcy at the moment.
• MCD has a Altman-Z score of 5.24. This is amongst the best in the industry. MCD outperforms 90.37% of its industry peers.
• MCD has a better Debt to FCF ratio (5.18) than 74.81% of its industry peers.
• MCD has a Current ratio of 1.71. This is in the better half of the industry: MCD outperforms 77.78% of its industry peers.
• MCD has a Quick ratio of 1.70. This is in the better half of the industry: MCD outperforms 80.00% of its industry peers.

Profitability Assessment of NYSE:MCD

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MCD was assigned a score of 9 for profitability:

• MCD has a better Return On Assets (16.00%) than 93.33% of its industry peers.
• MCD's Return On Invested Capital of 19.34% is amongst the best of the industry. MCD outperforms 91.11% of its industry peers.
• MCD had an Average Return On Invested Capital over the past 3 years of 15.49%. This is significantly above the industry average of 10.25%.
• The 3 year average ROIC (15.49%) for MCD is below the current ROIC(19.34%), indicating increased profibility in the last year.
• MCD has a better Profit Margin (33.31%) than 98.52% of its industry peers.
• MCD's Profit Margin has improved in the last couple of years.
• The Operating Margin of MCD (46.01%) is better than 99.26% of its industry peers.
• MCD's Operating Margin has improved in the last couple of years.
• MCD's Gross Margin of 57.24% is fine compared to the rest of the industry. MCD outperforms 64.44% of its industry peers.
• MCD's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of MCD contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.