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Analyzing NYSE:MCD's Dividend Potential.

By Mill Chart

Last update: Feb 23, 2024

Take a closer look at MCDONALD'S CORP (NYSE:MCD), a stock of interest to dividend investors uncovered by our stock screener. NYSE:MCD excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend for NYSE:MCD

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MCD was assigned a score of 7 for dividend:

  • MCD's Dividend Yield is rather good when compared to the industry average which is at 4.54. MCD pays more dividend than 83.09% of the companies in the same industry.
  • On average, the dividend of MCD grows each year by 8.33%, which is quite nice.
  • MCD has paid a dividend for at least 10 years, which is 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.

Understanding NYSE:MCD's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MCD, the assigned 5 for health provides valuable insights:

  • Looking at the Debt to FCF ratio, with a value of 5.12, MCD is in the better half of the industry, outperforming 75.74% of the companies in the same industry.
  • MCD's Quick ratio of 1.16 is fine compared to the rest of the industry. MCD outperforms 62.50% of its industry peers.

Profitability Analysis for NYSE:MCD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MCD, the assigned 9 is a significant indicator of profitability:

  • MCD's Return On Assets of 15.08% is amongst the best of the industry. MCD outperforms 92.65% of its industry peers.
  • MCD's Return On Invested Capital of 18.95% is amongst the best of the industry. MCD outperforms 91.18% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCD is significantly above the industry average of 10.60%.
  • The 3 year average ROIC (17.44%) for MCD is below the current ROIC(18.95%), indicating increased profibility in the last year.
  • MCD has a better Profit Margin (33.22%) than 98.53% of its industry peers.
  • In the last couple of years the Profit Margin of MCD has grown nicely.
  • MCD's Operating Margin of 45.95% is amongst the best of the industry. MCD outperforms 99.26% of its industry peers.
  • MCD's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 57.12%, MCD is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
  • MCD's Gross Margin has improved in the last couple of years.

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

For an up to date full fundamental analysis you can check the fundamental report of MCD


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NYSE:MCD (4/19/2024, 9:06:08 AM)


+0.66 (+0.24%)

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