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Is NYSE:MCD suited for dividend investing?

By Mill Chart

Last update: Apr 8, 2024

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.

Understanding NYSE:MCD's Dividend Score

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:MCD has been assigned a 7 for dividend:

  • MCD's Dividend Yield is rather good when compared to the industry average which is at 2.51. MCD pays more dividend than 83.58% of the companies in the same industry.
  • The dividend of MCD is nicely growing with an annual growth rate of 8.37%!
  • MCD has been paying a dividend for at least 10 years, so it has 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.

Deciphering NYSE:MCD's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MCD has received a 6 out of 10:

  • An Altman-Z score of 4.65 indicates that MCD is not in any danger for bankruptcy at the moment.
  • MCD's Altman-Z score of 4.65 is amongst the best of the industry. MCD outperforms 88.81% of its industry peers.
  • MCD has a better Debt to FCF ratio (5.64) than 70.90% of its industry peers.
  • With a decent Quick ratio value of 1.16, MCD is doing good in the industry, outperforming 61.19% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MCD has earned a 9 out of 10:

  • MCD has a better Return On Assets (15.08%) than 91.79% of its industry peers.
  • The Return On Invested Capital of MCD (18.86%) is better than 91.04% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCD is significantly above the industry average of 10.30%.
  • The last Return On Invested Capital (18.86%) for MCD is above the 3 year average (17.45%), which is a sign of increasing profitability.
  • The Profit Margin of MCD (33.22%) is better than 99.25% of its industry peers.
  • MCD's Profit Margin has improved in the last couple of years.
  • MCD has a better Operating Margin (46.07%) than 100.00% of its industry peers.
  • MCD's Operating Margin has improved in the last couple of years.
  • MCD has a Gross Margin of 57.12%. This is in the better half of the industry: MCD outperforms 64.18% of its industry peers.
  • In the last couple of years the Gross Margin of MCD has grown nicely.

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

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

Keep in mind

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 (5/24/2024, 7:04:00 PM)

After market: 258.4 +0.29 (+0.11%)

258.11

+0.18 (+0.07%)

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