Exploring NYSE:MCD's dividend characteristics.

Last update: Sep 26, 2024

MCDONALD'S CORP (NYSE:MCD) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:MCD scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Evaluating Dividend: NYSE:MCD

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:MCD has been assigned a 7 for dividend:

MCD's Dividend Yield is rather good when compared to the industry average which is at 3.15. MCD pays more dividend than 81.48% 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.

Unpacking NYSE:MCD's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MCD, the assigned 5 for health provides valuable insights:

An Altman-Z score of 5.10 indicates that MCD is not in any danger for bankruptcy at the moment.
The Altman-Z score of MCD (5.10) is better than 88.89% of its industry peers.
MCD has a better Debt to FCF ratio (5.43) than 74.81% of its industry peers.

Profitability Assessment of NYSE:MCD

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MCD was assigned a score of 9 for profitability:

MCD's Return On Assets of 15.44% is amongst the best of the industry. MCD outperforms 92.59% of its industry peers.
With an excellent Return On Invested Capital value of 18.79%, MCD belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MCD is significantly above the industry average of 10.10%.
The last Return On Invested Capital (18.79%) for MCD is above the 3 year average (17.45%), which is a sign of increasing profitability.
MCD's Profit Margin of 32.25% is amongst the best of the industry. MCD outperforms 98.52% of its industry peers.
MCD's Profit Margin has improved in the last couple of years.
MCD has a better Operating Margin (45.67%) than 100.00% of its industry peers.
MCD's Operating Margin has improved in the last couple of years.
The Gross Margin of MCD (56.97%) is better than 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.

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

Keep in mind

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.