MCD vs TJX: Which Is the Better Dividend Stock?
As of Oct 23, 2026, TJX (The TJX Companies, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. MCD offers the higher yield at 3.06%, MCD has the higher dividend-safety score, and TJX looks like the better value (its fair-value estimate is 34% below its share price).
Key facts: MCD vs TJX
Data as of · Source: SmarterDividends data
- As of Oct 23, 2026, McDonald's Corporation (MCD) has the higher forward dividend yield at 3.06%, versus 1.30% for The TJX Companies, Inc. (TJX).
- As of Oct 23, 2026, SmarterDividends grades MCD's dividend safety A (86/100) and TJX's A (83/100).
- By SmarterDividends' count as of Oct 23, 2026, MCD has raised its dividend for 17 consecutive years and TJX for 29.
- As of Oct 23, 2026, MCD pays out 60% of its earnings as dividends and TJX pays out 33%.
- As of Oct 23, 2026, MCD's fair-value estimate is 35% below its share price and TJX's fair-value estimate is 34% below its share price, so TJX 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 23, 2026, https://smarterdividends.com/compare/mcd-vs-tjx
| Metric | MCD | TJX |
|---|---|---|
| Forward yield | 3.06% | 1.30% |
| Annual dividend | $7.72 | $1.92 |
| Payout ratio | 60% | 33% |
| Years of growth | 17 yr | 29 yr |
| 5-yr dividend growth | 7.3% | 12.4% |
| 5-yr total return | -1% | 112% |
| Dividend safety score | 86 (A) | 83 (A) |
| Fair value estimate | $164.69 | $97.68 |
| Upside to fair value | -35% | -34% |
| Frequency | quarterly | quarterly |
| Market cap | $178.8B | $162.8B |
| P/E ratio | 20.5 | 27.3 |
Higher yield
MCD
3.06%
Safer dividend
MCD
Grade A
Faster growth
TJX
12.4%
Better value
TJX
-34% upside
MCD vs TJX — FAQ
Is MCD or TJX a better dividend stock?
On the data, TJX wins more head-to-head categories (5 vs 3). MCD offers the higher yield (3.06%), 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, MCD or TJX?
MCD has the higher forward dividend yield at 3.06%, versus 1.30% 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 23, 2026, TJX looks like the better value: its fair-value estimate is 34% below its share price (overvalued). For MCD, its fair-value estimate is 35% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.