SmarterDividends

BABAF vs MCD: Which Is the Better Dividend Stock?

As of June 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 2.61%, MCD has the higher dividend-safety score, and BABAF trades at the larger discount to fair value (+5%).

MetricBABAFMCD
Forward yield0.90%2.61%
Annual dividend$0.13$7.44
Payout ratio17%60%
Years of growth2 yr17 yr
5-yr dividend growth7.2%
5-yr total return-49%23%
Dividend safety score76 (B)88 (A)
Fair value estimate$15.43$223.00
Upside to fair value+5%-22%
Frequencyannualquarterly
Market cap$281.3B$202.4B
P/E ratio18.123.5

Higher yield

MCD

2.61%

Safer dividend

MCD

Grade A

Faster growth

MCD

7.2%

Better value

BABAF

+5% upside

BABAF vs MCD — FAQ

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