Is NYSE:MCD a Good Fit 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.

Evaluating Dividend: NYSE:MCD

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:MCD scores a 7 out of 10:

• MCD's Dividend Yield is rather good when compared to the industry average which is at 3.36. MCD pays more dividend than 83.82% of the companies in the same industry.
• On average, the dividend of MCD grows each year by 8.08%, 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.
• MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Understanding NYSE:MCD's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MCD has earned a 6 out of 10:

• An Altman-Z score of 5.21 indicates that MCD is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.21, MCD belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 5.18, MCD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
• Looking at the Current ratio, with a value of 1.71, MCD is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
• MCD has a better Quick ratio (1.70) than 80.15% of its industry peers.

Profitability Examination for NYSE: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 NYSE:MCD, the assigned 9 is a significant indicator of profitability:

• MCD's Return On Assets of 16.00% is amongst the best of the industry. MCD outperforms 93.38% of its industry peers.
• The Return On Invested Capital of MCD (19.34%) is better than 91.18% 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 10.14%.
• The 3 year average ROIC (15.49%) for MCD is below the current ROIC(19.34%), indicating increased profibility in the last year.
• The Profit Margin of MCD (33.31%) is better than 98.53% of its industry peers.
• In the last couple of years the Profit Margin of MCD has grown nicely.
• MCD has a Operating Margin of 46.01%. This is amongst the best in the industry. MCD outperforms 99.26% of its industry peers.
• In the last couple of years the Operating Margin of MCD has grown nicely.
• The Gross Margin of MCD (57.24%) is better than 63.97% of its industry peers.
• MCD's Gross Margin has improved in the last couple of years.

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

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

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.