Analyzing NYSE:MCD's Dividend Potential.

Our stock screening tool has identified MCDONALD'S CORP (NYSE:MCD) as a strong dividend contender with robust fundamentals. NYSE:MCD exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Assessing Dividend Metrics 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 2.76. 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 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.

A Closer Look at Health for NYSE:MCD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MCD, the assigned 5 reflects its health status:

• An Altman-Z score of 4.66 indicates that MCD is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.66, MCD belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 5.64, MCD is doing good in the industry, outperforming 71.64% of the companies in the same industry.

A Closer Look at Profitability for NYSE:MCD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MCD has achieved a 9:

• Looking at the Return On Assets, with a value of 15.08%, MCD belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 18.86%, MCD belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for MCD is significantly above the industry average of 9.90%.
• The 3 year average ROIC (17.45%) for MCD is below the current ROIC(18.86%), indicating increased profibility in the last year.
• MCD has a better Profit Margin (33.22%) than 99.25% of its industry peers.
• In the last couple of years the Profit Margin of MCD has grown nicely.
• The Operating Margin of MCD (46.07%) is better than 100.00% of its industry peers.
• MCD's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 57.12%, MCD is doing good in the industry, outperforming 63.43% of the companies in the same industry.
• 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.

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

Keep in mind

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.