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 2.78%, MCD has the higher dividend-safety score, and BABA trades at the larger discount to fair value (+7%).
| Metric | BABA | MCD |
|---|---|---|
| Forward yield | 0.91% | 2.78% |
| Annual dividend | $1.05 | $7.44 |
| Payout ratio | 17% | 60% |
| Years of growth | 2 yr | 17 yr |
| 5-yr dividend growth | — | 7.3% |
| 5-yr total return | -31% | 13% |
| Dividend safety score | 58 (C) | 88 (A) |
| Fair value estimate | $123.47 | $211.52 |
| Upside to fair value | +7% | -21% |
| Frequency | annual | quarterly |
| Market cap | $288.4B | $190.2B |
| P/E ratio | 17.7 | 22.1 |
Higher yield
MCD
2.78%
Safer dividend
MCD
Grade A
Faster growth
MCD
7.3%
Better value
BABA
+7% upside
BABA vs MCD — FAQ
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