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

MCDONALD'S CORP (NYSE:MCD) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:MCD demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

What does the Dividend looks like for NYSE:MCD

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:

• MCD's Dividend Yield is rather good when compared to the industry average which is at 3.15. MCD pays more dividend than 81.34% of the companies in the same industry.
• The dividend of MCD is nicely growing with an annual growth rate of 8.37%!
• 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.

A Closer Look at Health 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 6 out of 10:

• An Altman-Z score of 5.21 indicates that MCD is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.21, MCD belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
• MCD's Debt to FCF ratio of 5.43 is fine compared to the rest of the industry. MCD outperforms 74.63% of its industry peers.
• MCD has a better Quick ratio (1.06) than 60.45% of its industry peers.

Analyzing Profitability Metrics

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:

• With an excellent Return On Assets value of 15.44%, MCD belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 18.79%, 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 10.14%.
• The 3 year average ROIC (17.45%) for MCD is below the current ROIC(18.79%), indicating increased profibility in the last year.
• MCD has a better Profit Margin (32.25%) than 98.51% of its industry peers.
• MCD's Profit Margin has improved in the last couple of years.
• The Operating Margin of MCD (45.67%) 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 56.97%. This is in the better half of the industry: MCD outperforms 64.18% of its industry peers.
• MCD's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

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.