Is NYSE:MCD a Good Fit for Dividend Investing?

MCDONALD'S CORP (NYSE:MCD) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:MCD demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:MCD

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:MCD has achieved a 7 out of 10:

• MCD's Dividend Yield is rather good when compared to the industry average which is at 2.56. 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 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.
• MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Deciphering NYSE:MCD's Health Rating

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. NYSE:MCD has earned a 6 out of 10:

• MCD has an Altman-Z score of 4.69. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
• MCD has a Altman-Z score of 4.69. This is amongst the best in the industry. MCD outperforms 89.55% of its industry peers.
• MCD has a better Debt to FCF ratio (5.64) than 70.90% of its industry peers.
• Looking at the Quick ratio, with a value of 1.16, MCD is in the better half of the industry, outperforming 60.45% of the companies in the same industry.

Profitability Insights: NYSE:MCD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:MCD, the assigned 9 is noteworthy for profitability:

• MCD's Return On Assets of 15.08% is amongst the best of the industry. MCD outperforms 91.79% of its industry peers.
• MCD has a Return On Invested Capital of 18.86%. This is amongst the best in the industry. MCD outperforms 91.79% of its industry peers.
• MCD had an Average Return On Invested Capital over the past 3 years of 17.45%. This is significantly above the industry average of 10.18%.
• The last Return On Invested Capital (18.86%) for MCD is above the 3 year average (17.45%), which is a sign of increasing profitability.
• MCD has a better Profit Margin (33.22%) than 99.25% of its industry peers.
• MCD's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 46.07%, 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 (57.12%) than 64.18% of its industry peers.
• MCD's Gross Margin has improved in the last couple of years.

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

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.