Is NYSE:MCD suited for dividend investing?

Consider MCDONALD'S CORP (NYSE:MCD) as a top pick for dividend investors, identified by our stock screening tool. NYSE:MCD shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Looking at the Dividend

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:

• Compared to an average industry Dividend Yield of 3.42, MCD pays a better dividend. On top of this MCD pays more dividend than 84.29% of the companies listed in the same industry.
• On average, the dividend of MCD grows each year by 8.07%, which is quite nice.
• 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.

Health Analysis for NYSE:MCD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MCD scores a 6 out of 10:

• MCD has an Altman-Z score of 4.90. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of MCD (4.90) is better than 92.14% of its industry peers.
• MCD has a Debt to FCF ratio of 5.38. This is in the better half of the industry: MCD outperforms 75.00% of its industry peers.
• MCD has a better Current ratio (1.35) than 60.71% of its industry peers.
• The Quick ratio of MCD (1.33) is better than 65.71% of its industry peers.

What does the Profitability looks like 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:

• The Return On Assets of MCD (15.86%) is better than 95.71% of its industry peers.
• The Return On Invested Capital of MCD (19.18%) is better than 90.71% 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 10.38%.
• The 3 year average ROIC (15.49%) for MCD is below the current ROIC(19.18%), indicating increased profibility in the last year.
• MCD has a better Profit Margin (33.06%) than 99.29% of its industry peers.
• MCD's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 45.89%, MCD belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
• In the last couple of years the Operating Margin of MCD has grown nicely.
• With a decent Gross Margin value of 57.45%, MCD is doing good in the industry, outperforming 65.00% 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.

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

Disclaimer

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.