SmarterDividends

BABAF 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 BABAF trades at the larger discount to fair value (+4%).

MetricBABAFMCD
Forward yield0.89%2.78%
Annual dividend$0.13$7.44
Payout ratio17%60%
Years of growth2 yr17 yr
5-yr dividend growth7.3%
5-yr total return-30%13%
Dividend safety score76 (B)88 (A)
Fair value estimate$15.43$211.52
Upside to fair value+4%-21%
Frequencyannualquarterly
Market cap$293.6B$190.2B
P/E ratio18.922.1

Higher yield

MCD

2.78%

Safer dividend

MCD

Grade A

Faster growth

MCD

7.3%

Better value

BABAF

+4% upside

BABAF vs MCD — FAQ

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