SmarterDividends

MCD vs TJX: Which Is the Better Dividend Stock?

As of Oct 16, 2026, MCD and TJX are closely matched. MCD offers the higher yield at 3.24%, MCD has the higher dividend-safety score, and MCD looks like the better value (its fair-value estimate is 32% below its share price).

Key facts: MCD vs TJX

Data as of · Source: SmarterDividends data

  • As of Oct 16, 2026, McDonald's Corporation (MCD) has the higher forward dividend yield at 3.24%, versus 1.33% for The TJX Companies, Inc. (TJX).
  • As of Oct 16, 2026, SmarterDividends grades MCD's dividend safety A (86/100) and TJX's A (83/100).
  • By SmarterDividends' count as of Oct 16, 2026, MCD has raised its dividend for 17 consecutive years and TJX for 29.
  • As of Oct 16, 2026, MCD pays out 60% of its earnings as dividends and TJX pays out 33%.
  • As of Oct 16, 2026, MCD's fair-value estimate is 32% below its share price and TJX's fair-value estimate is 32% below its share price, so MCD looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "MCD vs TJX: Dividend Yield, Safety & Value Compared," updated Oct 16, 2026, https://smarterdividends.com/compare/mcd-vs-tjx

MetricMCDTJX
Forward yield3.24%1.33%
Annual dividend$7.35$1.81
Payout ratio60%33%
Years of growth17 yr29 yr
5-yr dividend growth7.3%12.4%
5-yr total return-4%112%
Dividend safety score86 (A)83 (A)
Fair value estimate$164.56$97.68
Upside to fair value-32%-32%
Frequencyquarterlyquarterly
Market cap$171.6B$159.7B
P/E ratio19.726.8

Higher yield

MCD

3.24%

Safer dividend

MCD

Grade A

Faster growth

TJX

12.4%

Better value

MCD

-32% upside

MCD vs TJX — FAQ

Is MCD or TJX a better dividend stock?

MCD and TJX are closely matched. MCD has the higher yield; MCD scores better on safety.

Which has a higher dividend yield, MCD or TJX?

MCD has the higher forward dividend yield at 3.24%, versus 1.33% for TJX.

Is MCD or TJX safer?

MCD has the higher dividend-safety score (86/100 vs 83/100), reflecting stronger payout coverage and dividend-growth history.

Is MCD or TJX better value right now?

As of Oct 16, 2026, MCD looks like the better value: its fair-value estimate is 32% below its share price (overvalued). For TJX, its fair-value estimate is 32% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.