SmarterDividends

BABA vs MCD: Which Is the Better Dividend Stock?

As of September 2026, MCD (McDonald's Corporation) screens as the stronger dividend stock, winning 6 of 7 head-to-head metrics. MCD offers the higher yield at 2.95%, MCD has the higher dividend-safety score, and MCD trades at the larger discount to fair value (-15%).

MetricBABAMCD
Forward yield0.96%2.95%
Annual dividend$1.05$7.44
Payout ratio24%60%
Years of growth2 yr17 yr
5-yr dividend growth7.3%
5-yr total return-26%5%
Dividend safety score58 (C)88 (A)
Fair value estimate$90.75$215.78
Upside to fair value-17%-15%
Frequencyannualquarterly
Market cap$271.7B$178.7B
P/E ratio24.720.5

Higher yield

MCD

2.95%

Safer dividend

MCD

Grade A

Faster growth

MCD

7.3%

Better value

MCD

-15% upside

BABA vs MCD — FAQ

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