Share king points models for McDonald's
Trend check: 5 / 8
Fundamental check: 7 / 10
Dividend check: 9 / 10
Endurance check: 7 / 10
Dividend check for McDonald's
Dividend check for McDonald's in detail
McDonald's achieves Dividenden-Check very good 9 points. McDonald's belongs with a dividend yield of 2.2% McDonald's is not one of the highest dividend payers, but the company has a very good dividend history. McDonald's has increased its dividend every year for almost 50 years. In addition, there has been strong dividend growth of +7.5% per year over the last five and ten years. The fact that growth is the same over both periods also shows that McDonald's increases its dividend very evenly.
The payout ratio of 60% can be regarded as absolutely healthy. The fact that McDonald's does not achieve the highest score in the dividend check is due to the below-average performance of the share over the last five years. McDonald's achieves a return of a good 14% (including dividends), while the S&P 500 (total return index) achieves 17%. However, this is also a very attractive return, especially when the maximum drawdown over the last five years of just -17% is put into perspective.
Chart analysis for McDonald's
Chart analysis for McDonald's (daily chart) since 2021
In the long term, the McDonald's share has followed a very stable upward trend. Here in the chart analysis, the medium-term medium-term upward trend channel (marked in blue) stands out. Although the share briefly crossed this downwards in the summer of 2024, it then quickly stabilized at the support of USD 246 (purple), it quickly stabilized. succeeded. As long as McDonald's shares remain above this level, the upward trend remains intact.
Initial support can already be found in the USD 280 range (marked in green). This is due to the upward price gap from August 2024. At the beginning of the year, McDonald's shares also successfully corrected to this level. The lower limit of the medium-term upward trend channel also runs here. The share is particularly interesting to buy near this level.
However, a small correction to the USD 300 level (light blue) is already an entry point. This is the former all-time high from the years 2023 and 2024. After breaking above this level, McDonald's shares marked the lower end of their sideways movement here. There is currently a small resistance in the form of the all-time high in the USD 318 to 324 range (marked in red). It is possible that this level could be breached, but this is likely to end at around USD 350 at the latest, as the share would then be very close to the upper limit of the trend channel.
Historical valuation based on the P/E ratio
P/E ratio in historical comparison for McDonald's
With a P/E ratio of currently 28 McDonald's is valued slightly higher than the historical average over the last 20 years (22.7). However, the average over the last ten years of around 26 shows that McDonald's has been able to successfully establish a higher valuation level in recent years. Although an entry at a P/E ratio of less than 25 would be more attractive, the share has almost never been valued significantly lower in recent years. The current valuation with a P/E ratio of 28 is therefore by no means excessive.
Dividend analysis
Dividend yield & dividend per share for McDonald's
McDonald's is a prime example of what stable dividend growth should look like. Over both the last five and the last ten years, the average annual dividend growth is average annual dividend growth of +7.5%. The dividend yield has also fluctuated steadily between 2.0% and 2.7% in recent years. The current dividend yield of 2.2% is not exactly high. However, you should not buy McDonald's as a high-dividend stock either. The focus here is on stable dividend growth. And after that, McDonald's is one of the best dividend stocks out there.
Conclusion on McDonald's
McDonald's has an excellent dividend history and is a very interesting investment for a dividend portfolio. The valuation with a P/E ratio of 28 is absolutely fair in a historical comparison. A small correction towards the first support level of around USD 300 would be ideal for an entry. As part of a dividend strategy, McDonald's is particularly interesting for stability and consistent dividend growth. However, you will have to be satisfied with a slightly lower payout of just over 2%
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