MCD dividend yield: 2.27%. KO dividend yield: 3.11%. McDonald's is a Dividend Aristocrat with 48+ consecutive years of increases. As the world's most visited fast food brand with 40,000+ locations, its franchise model generates high-margin royalties. MCD's real estate holdings (owning land under many franchised locations) create an additional asset floor supporting long-term value. Coca-Cola is a Dividend King with 62+ consecutive years of dividend increases. Operating in 200+ countries with brands including Coke, Sprite, Fanta, and Dasani. Warren Buffett's Berkshire Hathaway holds ~$24B in KO stock — and his yield on cost exceeds 50% from his 1980s purchases, illustrating the power of long-term dividend compounding.
McDonald's is a Dividend Aristocrat with 48+ consecutive years of increases. As the world's most visited fast food brand with 40,000+ locations, its franchise model generates high-margin royalties. MCD's real estate holdings (owning land under many franchised locations) create an additional asset floor supporting long-term value.
Coca-Cola is a Dividend King with 62+ consecutive years of dividend increases. Operating in 200+ countries with brands including Coke, Sprite, Fanta, and Dasani. Warren Buffett's Berkshire Hathaway holds ~$24B in KO stock — and his yield on cost exceeds 50% from his 1980s purchases, illustrating the power of long-term dividend compounding.
MCD currently offers a 2.27% yield (6.68/share/year) while KO offers 3.11% (1.96/share/year). KO provides higher current income. However, MCD has grown its dividend faster (8.5% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in MCD vs KO earn per year?
With $10,000 invested today: MCD pays approximately $227/year. KO pays approximately $311/year. With DRIP reinvestment over 10 years, these grow to $652/year (MCD) and $610/year (KO).
Does MCD or KO pay monthly dividends?
MCD pays quarterly dividends. KO pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
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