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

Our stock screening tool has identified MCDONALD'S CORP (NYSE:MCD) as a strong dividend contender with robust fundamentals. NYSE:MCD exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

How do we evaluate the Dividend for NYSE:MCD?

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 3.23. MCD pays more dividend than 82.22% of the companies in the same industry.
• The dividend of MCD is nicely growing with an annual growth rate of 8.37%!
• 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.

ChartMill's Evaluation of Health

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:

• MCD has an Altman-Z score of 4.87. This indicates that MCD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.87, MCD belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
• MCD has a better Debt to FCF ratio (5.20) than 74.07% of its industry peers.

How do we evaluate the Profitability for NYSE:MCD?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MCD scores a 9 out of 10:

• MCD has a better Return On Assets (16.06%) than 93.33% of its industry peers.
• MCD's Return On Invested Capital of 19.35% is amongst the best of the industry. MCD outperforms 92.59% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for MCD is significantly above the industry average of 10.12%.
• The 3 year average ROIC (17.45%) for MCD is below the current ROIC(19.35%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 33.36%, MCD belongs to the best of the industry, outperforming 99.26% of the companies in the same industry.
• 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 has a Gross Margin of 57.01%. This is in the better half of the industry: MCD outperforms 63.70% 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.

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.