ARCO vs BABAF: Which Is the Better Dividend Stock?
As of Oct 18, 2026, ARCO (Arcos Dorados Holdings Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. ARCO offers the higher yield at 3.52%, BABAF has the higher dividend-safety score, and ARCO looks like the better value (its fair-value estimate is 1% above its share price).
Key facts: ARCO vs BABAF
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Arcos Dorados Holdings Inc. (ARCO) has the higher forward dividend yield at 3.52%, versus 0.95% for Alibaba Group Holding Limited (BABAF).
- As of Oct 18, 2026, SmarterDividends grades ARCO's dividend safety C (60/100) and BABAF's B (76/100).
- By SmarterDividends' count as of Oct 18, 2026, ARCO has raised its dividend for 0 consecutive years and BABAF for 2.
- As of Oct 18, 2026, ARCO pays out 21% of its earnings as dividends and BABAF pays out 25%.
- As of Oct 18, 2026, ARCO's fair-value estimate is 1% above its share price and BABAF's fair-value estimate is 1% below its share price, so ARCO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ARCO vs BABAF: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/arco-vs-babaf
| Metric | ARCO | BABAF |
|---|---|---|
| Forward yield | 3.52% | 0.95% |
| Annual dividend | $0.28 | $0.13 |
| Payout ratio | 21% | 25% |
| Years of growth | 0 yr | 2 yr |
| 5-yr dividend growth | 3.7% | — |
| 5-yr total return | 62% | -13% |
| Dividend safety score | 60 (C) | 76 (B) |
| Fair value estimate | $8.03 | $13.59 |
| Upside to fair value | +1% | -1% |
| Frequency | quarterly | annual |
| Market cap | $1.7B | $274.3B |
| P/E ratio | 6.5 | 26.5 |
Higher yield
ARCO
3.52%
Safer dividend
BABAF
Grade B
Faster growth
ARCO
3.7%
Better value
ARCO
+1% upside
ARCO vs BABAF — FAQ
Is ARCO or BABAF a better dividend stock?
On the data, ARCO wins more head-to-head categories (5 vs 2). ARCO offers the higher yield (3.52%), while BABAF has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, ARCO or BABAF?
ARCO has the higher forward dividend yield at 3.52%, versus 0.95% for BABAF.
Is ARCO or BABAF safer?
BABAF has the higher dividend-safety score (76/100 vs 60/100), reflecting stronger payout coverage and dividend-growth history.
Is ARCO or BABAF better value right now?
As of Oct 18, 2026, ARCO looks like the better value: its fair-value estimate is 1% above its share price (fairly valued). For BABAF, its fair-value estimate is 1% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.