ARCO vs BABAF: Which Is the Better Dividend Stock?
As of August 2026, ARCO (Arcos Dorados Holdings Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. ARCO offers the higher yield at 3.52%, BABAF has the higher dividend-safety score, and BABAF trades at the larger discount to fair value (+26%).
| Metric | ARCO | BABAF |
|---|---|---|
| Forward yield | 3.52% | 0.85% |
| Annual dividend | $0.28 | $0.13 |
| Payout ratio | 21% | 24% |
| Years of growth | 0 yr | 2 yr |
| 5-yr dividend growth | 3.7% | — |
| 5-yr total return | 55% | -17% |
| Dividend safety score | 55 (C) | 76 (B) |
| Fair value estimate | $9.62 | $19.41 |
| Upside to fair value | +21% | +26% |
| Frequency | quarterly | annual |
| Market cap | $1.7B | $296.2B |
| P/E ratio | 6.5 | 28.1 |
Higher yield
ARCO
3.52%
Safer dividend
BABAF
Grade B
Faster growth
ARCO
3.7%
Better value
BABAF
+26% upside
ARCO vs BABAF — FAQ
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