SmarterDividends

BABA vs MCD: Which Is the Better Dividend Stock?

As of July 2026, MCD (McDonald's Corporation) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. MCD offers the higher yield at 2.73%, MCD has the higher dividend-safety score, and BABA trades at the larger discount to fair value (+10%).

MetricBABAMCD
Forward yield0.91%2.73%
Annual dividend$1.05$7.44
Payout ratio17%60%
Years of growth2 yr17 yr
5-yr dividend growth7.3%
5-yr total return-33%11%
Dividend safety score58 (C)88 (A)
Fair value estimate$123.79$212.03
Upside to fair value+10%-20%
Frequencyannualquarterly
Market cap$275.7B$192.9B
P/E ratio17.722.4

Higher yield

MCD

2.73%

Safer dividend

MCD

Grade A

Faster growth

MCD

7.3%

Better value

BABA

+10% upside

BABA vs MCD — FAQ

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