Why MCDONALD'S CORP (NYSE:MCD) is a Top Pick for Dividend Investors.

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

Dividend Assessment of MCD

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. MCD has been assigned a 7 for dividend:

• MCD's Dividend Yield is a higher than the industry average which is at 3.92.
• On average, the dividend of MCD grows each year by 7.43%, which is quite nice.
• MCD has paid a dividend for at least 10 years, which is 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.

Exploring MCD's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. MCD has earned a 6 out of 10:

• An Altman-Z score of 5.15 indicates that MCD is not in any danger for bankruptcy at the moment.
• The Altman-Z score of MCD (5.15) is better than 88.97% of its industry peers.
• MCD has a better Debt to FCF ratio (6.03) than 72.79% of its industry peers.
• The Current ratio of MCD (1.19) is better than 64.71% of its industry peers.
• MCD has a better Quick ratio (1.18) than 66.91% of its industry peers.

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

• The Return On Assets of MCD (14.90%) is better than 92.65% of its industry peers.
• MCD has a better Return On Invested Capital (18.47%) than 91.18% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for MCD is above the industry average of 15.69%.
• 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.
• With an excellent Profit Margin value of 31.72%, MCD belongs to the best of the industry, outperforming 99.26% of the companies in the same industry.
• MCD's Profit Margin has improved in the last couple of years.
• 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.
• MCD has a better Gross Margin (56.76%) than 68.38% of its industry peers.
• In the last couple of years the Gross Margin of MCD has grown nicely.

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Check the latest full fundamental report of MCD for a complete fundamental analysis.

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.