HD vs MCD: Which Is the Better Dividend Stock?
As of September 2026, MCD (McDonald's Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. HD offers the higher yield at 3.02%, MCD has the higher dividend-safety score, and MCD trades at the larger discount to fair value (-15%).
| Metric | HD | MCD |
|---|---|---|
| Forward yield | 3.02% | 2.95% |
| Annual dividend | $9.32 | $7.44 |
| Payout ratio | 65% | 60% |
| Years of growth | 16 yr | 17 yr |
| 5-yr dividend growth | 8.9% | 7.3% |
| 5-yr total return | -6% | 5% |
| Dividend safety score | 85 (A) | 88 (A) |
| Fair value estimate | $252.71 | $215.78 |
| Upside to fair value | -18% | -15% |
| Frequency | quarterly | quarterly |
| Market cap | $308.0B | $178.7B |
| P/E ratio | 21.6 | 20.5 |
Higher yield
HD
3.02%
Safer dividend
MCD
Grade A
Faster growth
HD
8.9%
Better value
MCD
-15% upside
HD vs MCD — FAQ
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