HD vs MCD: Which Is the Better Dividend Stock?
As of Oct 29, 2026, MCD (McDonald's Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. MCD offers the higher yield at 3.09%, MCD has the higher dividend-safety score, and HD looks like the better value (its fair-value estimate is 16% below its share price).
Key facts: HD vs MCD
Data as of · Source: SmarterDividends data
- As of Oct 29, 2026, McDonald's Corporation (MCD) has the higher forward dividend yield at 3.09%, versus 2.93% for The Home Depot, Inc. (HD).
- As of Oct 29, 2026, SmarterDividends grades HD's dividend safety A (85/100) and MCD's A (86/100).
- By SmarterDividends' count as of Oct 29, 2026, HD has raised its dividend for 16 consecutive years and MCD for 17.
- As of Oct 29, 2026, HD pays out 65% of its earnings as dividends and MCD pays out 60%.
- As of Oct 29, 2026, HD's fair-value estimate is 16% below its share price and MCD's fair-value estimate is 34% below its share price, so HD looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "HD vs MCD: Dividend Yield, Safety & Value Compared," updated Oct 29, 2026, https://smarterdividends.com/compare/hd-vs-mcd
| Metric | HD | MCD |
|---|---|---|
| Forward yield | 2.93% | 3.09% |
| Annual dividend | $9.32 | $7.72 |
| Payout ratio | 65% | 60% |
| Years of growth | 16 yr | 17 yr |
| 5-yr dividend growth | 8.9% | 7.3% |
| 5-yr total return | -20% | 2% |
| Dividend safety score | 85 (A) | 86 (A) |
| Fair value estimate | $266.02 | $164.28 |
| Upside to fair value | -16% | -34% |
| Frequency | quarterly | quarterly |
| Market cap | $316.8B | $177.3B |
| P/E ratio | 22.2 | 20.3 |
Higher yield
MCD
3.09%
Safer dividend
MCD
Grade A
Faster growth
HD
8.9%
Better value
HD
-16% upside
HD vs MCD — FAQ
Is HD or MCD a better dividend stock?
On the data, MCD wins more head-to-head categories (5 vs 3). MCD offers the higher yield (3.09%), 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, HD or MCD?
MCD has the higher forward dividend yield at 3.09%, versus 2.93% for HD.
Is HD or MCD safer?
MCD has the higher dividend-safety score (86/100 vs 85/100), reflecting stronger payout coverage and dividend-growth history.
Is HD or MCD better value right now?
As of Oct 29, 2026, HD looks like the better value: its fair-value estimate is 16% below its share price (overvalued). For MCD, its fair-value estimate is 34% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.