SmarterDividends

BABAF vs MCD: Which Is the Better Dividend Stock?

As of August 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 BABAF trades at the larger discount to fair value (+81%).

MetricBABAFMCD
Forward yield0.92%2.73%
Annual dividend$0.13$7.44
Payout ratio17%60%
Years of growth2 yr17 yr
5-yr dividend growth7.3%
5-yr total return-14%13%
Dividend safety score76 (B)88 (A)
Fair value estimate$28.94$216.78
Upside to fair value+81%-21%
Frequencyannualquarterly
Market cap$306.1B$193.1B
P/E ratio19.522.2

Higher yield

MCD

2.73%

Safer dividend

MCD

Grade A

Faster growth

MCD

7.3%

Better value

BABAF

+81% upside

BABAF vs MCD — FAQ

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