Exploring MCDONALD'S CORP (NYSE:MCD)'s dividend characteristics.

Unearth the potential of MCDONALD'S CORP (NYSE:MCD) as a dividend stock recommended by our stock screening tool. MCD maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding MCD's Dividend Score

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. MCD has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.40, MCD pays a better dividend. On top of this MCD pays more dividend than 80.60% of the companies listed in the same industry.
• The dividend of MCD is nicely growing with an annual growth rate of 7.43%!
• 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.

Health Assessment of MCD

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. MCD has received a 6 out of 10:

• MCD has an Altman-Z score of 5.16. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
• MCD has a Altman-Z score of 5.16. This is amongst the best in the industry. MCD outperforms 88.06% of its industry peers.
• With a decent Debt to FCF ratio value of 6.03, MCD is doing good in the industry, outperforming 70.90% of the companies in the same industry.
• With a decent Current ratio value of 1.19, MCD is doing good in the industry, outperforming 63.43% of the companies in the same industry.
• The Quick ratio of MCD (1.18) is better than 65.67% of its industry peers.

Looking at the Profitability

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 MCD, the assigned 8 is a significant indicator of profitability:

• MCD has a Return On Assets of 14.90%. This is amongst the best in the industry. MCD outperforms 91.79% of its industry peers.
• MCD's Return On Invested Capital of 18.47% is amongst the best of the industry. MCD outperforms 90.30% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for MCD is above the industry average of 15.96%.
• The last Return On Invested Capital (18.47%) for MCD is above the 3 year average (18.38%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 31.72%, MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of MCD has grown nicely.
• Looking at the Operating Margin, with a value of 45.73%, MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• MCD's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 56.76%, MCD is doing good in the industry, outperforming 68.66% of the companies in the same industry.
• In the last couple of years the Gross Margin of MCD has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.