Why MCDONALD'S CORP (NYSE:MCD) qualifies as a good dividend investing stock.

Discover MCDONALD'S CORP (NYSE:MCD)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:MCD showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Assessing Dividend for 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:

• Compared to an average industry Dividend Yield of 3.24, MCD pays a better dividend. On top of this MCD pays more dividend than 82.96% of the companies listed in the same industry.
• The dividend of MCD is nicely growing with an annual growth rate of 7.40%!
• 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.
• MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Evaluating Health: NYSE:MCD

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MCD has achieved a 5 out of 10:

• MCD's Debt to FCF ratio of 5.76 is fine compared to the rest of the industry. MCD outperforms 71.85% of its industry peers.
• With a decent Current ratio value of 1.19, MCD is doing good in the industry, outperforming 64.44% of the companies in the same industry.
• MCD's Quick ratio of 1.19 is fine compared to the rest of the industry. MCD outperforms 66.67% of its industry peers.

How do we evaluate the Profitability for NYSE:MCD?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MCD, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 14.90%, MCD belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 18.47%, MCD belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
• MCD had an Average Return On Invested Capital over the past 3 years of 18.38%. This is above the industry average of 16.11%.
• The 3 year average ROIC (18.38%) for MCD is below the current ROIC(18.47%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 31.72%, MCD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of MCD has grown nicely.
• Looking at the Operating Margin, with a value of 45.73%, MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of MCD has grown nicely.
• The Gross Margin of MCD (56.75%) is better than 68.15% 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.

Keep in mind

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.