Why NYSE:MCD qualifies as a good dividend investing stock.

Unearth the potential of MCDONALD'S CORP (NYSE:MCD) as a dividend stock recommended by our stock screening tool. NYSE:MCD maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding NYSE:MCD's Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MCD was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 3.01, MCD pays a better dividend. On top of this MCD pays more dividend than 82.84% of the companies listed 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.

What does the Health looks like for NYSE:MCD

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 5 out of 10:

• An Altman-Z score of 4.71 indicates that MCD is not in any danger for bankruptcy at the moment.
• MCD has a Altman-Z score of 4.71. This is amongst the best in the industry. MCD outperforms 92.54% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 5.20, MCD is in the better half of the industry, outperforming 73.88% of the companies in the same industry.

Assessing Profitability 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:

• Looking at the Return On Assets, with a value of 16.06%, MCD belongs to the top of the industry, outperforming 93.28% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 19.35%, MCD belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for MCD is significantly above the industry average of 10.08%.
• 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.
• With an excellent Profit Margin value of 33.36%, MCD belongs to the best of the industry, outperforming 99.25% of the companies in the same industry.
• MCD's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 45.81%, MCD belongs to the best 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 Gross Margin of 57.01%. This is in the better half of the industry: MCD outperforms 62.69% 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.

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.