BABAF vs MCD: Which Is the Better Dividend Stock?
As of Oct 3, 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 3.33%, MCD has the higher dividend-safety score, and BABAF looks like the better value (its fair-value estimate is 10% above its share price).
Key facts: BABAF vs MCD
Data as of · Source: SmarterDividends data
- As of Oct 3, 2026, McDonald's Corporation (MCD) has the higher forward dividend yield at 3.33%, versus 1.00% for Alibaba Group Holding Limited (BABAF).
- As of Oct 3, 2026, SmarterDividends grades BABAF's dividend safety B (76/100) and MCD's A (86/100).
- By SmarterDividends' count as of Oct 3, 2026, BABAF has raised its dividend for 2 consecutive years and MCD for 17.
- As of Oct 3, 2026, BABAF pays out 24% of its earnings as dividends and MCD pays out 60%.
- As of Oct 3, 2026, BABAF's fair-value estimate is 10% above its share price and MCD's fair-value estimate is 25% below its share price, so BABAF looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BABAF vs MCD: Dividend Yield, Safety & Value Compared," updated Oct 3, 2026, https://smarterdividends.com/compare/babaf-vs-mcd
| Metric | BABAF | MCD |
|---|---|---|
| Forward yield | 1.00% | 3.33% |
| Annual dividend | $0.13 | $7.72 |
| Payout ratio | 24% | 60% |
| Years of growth | 2 yr | 17 yr |
| 5-yr dividend growth | — | 7.3% |
| 5-yr total return | -37% | -6% |
| Dividend safety score | 76 (B) | 86 (A) |
| Fair value estimate | $14.37 | $173.38 |
| Upside to fair value | +10% | -25% |
| Frequency | annual | quarterly |
| Market cap | $260.5B | $164.1B |
| P/E ratio | 23.8 | 18.8 |
Higher yield
MCD
3.33%
Safer dividend
MCD
Grade A
Faster growth
MCD
7.3%
Better value
BABAF
+10% upside
BABAF vs MCD — FAQ
Is BABAF or MCD a better dividend stock?
On the data, MCD wins more head-to-head categories (5 vs 2). MCD offers the higher yield (3.33%), while MCD has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, BABAF or MCD?
MCD has the higher forward dividend yield at 3.33%, versus 1.00% for BABAF.
Is BABAF or MCD safer?
MCD has the higher dividend-safety score (86/100 vs 76/100), reflecting stronger payout coverage and dividend-growth history.
Is BABAF or MCD better value right now?
As of Oct 3, 2026, BABAF looks like the better value: its fair-value estimate is 10% above its share price (fairly valued). For MCD, its fair-value estimate is 25% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.