News Image

Why the dividend investor may take a look at NYSE:MCD.

By Mill Chart

Last update: Jun 12, 2024

Our stock screener has singled out MCDONALD'S CORP (NYSE:MCD) as a promising choice for dividend investors. NYSE:MCD not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.


Best Dividend stocks image

ChartMill's Evaluation of Dividend

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. NYSE:MCD has received a 7 out of 10:

  • MCD's Dividend Yield is rather good when compared to the industry average which is at 2.84. MCD pays more dividend than 83.58% of the companies in the same industry.
  • On average, the dividend of MCD grows each year by 8.37%, 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 their dividend for at least 10 years, which is a reliable track record.

Health Assessment of NYSE:MCD

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 5 out of 10:

  • An Altman-Z score of 4.75 indicates that MCD is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of MCD (4.75) is better than 90.30% of its industry peers.
  • With a decent Debt to FCF ratio value of 5.20, MCD is doing good in the industry, outperforming 73.88% of the companies in the same industry.

Profitability Examination for NYSE:MCD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MCD has earned a 9 out of 10:

  • MCD's Return On Assets of 16.06% is amongst the best of the industry. MCD outperforms 93.28% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.35%, MCD belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
  • MCD had an Average Return On Invested Capital over the past 3 years of 17.45%. This is significantly above the industry average of 10.11%.
  • The last Return On Invested Capital (19.35%) for MCD is above the 3 year average (17.45%), which is a sign of increasing profitability.
  • MCD's Profit Margin of 33.36% is amongst the best of the industry. MCD outperforms 99.25% of its industry peers.
  • In the last couple of years the Profit Margin of MCD has grown nicely.
  • The Operating Margin of MCD (45.81%) is better than 100.00% of its industry peers.
  • MCD's Operating Margin has improved in the last couple of years.
  • MCD's Gross Margin of 57.01% is fine compared to the rest of the industry. MCD outperforms 62.69% of its industry peers.
  • MCD's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

Back