Balancing Dividends and Fundamentals: The Case of NYSE:MCD.

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.

How We Gauge Dividend for 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:

• Compared to an average industry Dividend Yield of 3.11, MCD pays a better dividend. On top of this MCD pays more dividend than 82.96% 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Examination 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 5 out of 10:

• An Altman-Z score of 4.75 indicates that MCD is not in any danger for bankruptcy at the moment.
• MCD has a better Altman-Z score (4.75) than 91.85% of its industry peers.
• MCD has a Debt to FCF ratio of 5.20. This is in the better half of the industry: MCD outperforms 74.07% of its industry peers.

A Closer Look at Profitability for 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 has a Return On Assets of 16.06%. This is amongst the best in the industry. MCD outperforms 93.33% of its industry peers.
• MCD has a better Return On Invested Capital (19.35%) than 91.11% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for MCD is significantly above the industry average of 10.04%.
• The 3 year average ROIC (17.45%) for MCD is below the current ROIC(19.35%), indicating increased profibility in the last year.
• MCD has a Profit Margin of 33.36%. This is amongst the best in the industry. MCD outperforms 99.26% of its industry peers.
• In the last couple of years the Profit Margin of MCD has grown nicely.
• MCD has a Operating Margin of 45.81%. This is amongst the best in the industry. MCD outperforms 100.00% of its industry peers.
• In the last couple of years the Operating Margin of MCD has grown nicely.
• With a decent Gross Margin value of 57.01%, MCD is doing good in the industry, outperforming 62.96% of the companies in the same industry.
• In the last couple of years the Gross Margin of MCD has grown nicely.

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

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.