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MCD vs MO: Dividend Comparison 2026

MCD yields 2.27% · MO yields 9.11% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 MO wins by $6.7K in total portfolio value
10 years
MCD
McDonald's Corporation
2.27%
Share price
$294.50
Annual div
$6.68
5Y div CAGR
8.5%
Payout ratio
72%
After 10 yrs · $10,000 · DRIP
Portfolio value
$21.0K
Annual income
$652.30
Full MCD calculator →
MO
Altria Group Inc.
9.11%
Share price
$44.80
Annual div
$4.08
5Y div CAGR
4.3%
Payout ratio
78%
After 10 yrs · $10,000 · DRIP
Portfolio value
$27.7K
Annual income
$4,052.72
Full MO calculator →

Portfolio growth — MCD vs MO

Annual dividend income

MetricMCDMO
Forward yield2.27%9.11%
Annual dividend / share$6.68$4.08
Payout ratio72%78%
1-year div growth10%4.1%
5-year div CAGR8.5%4.3%
Portfolio after 10y$21.0K$27.7K
Annual income after 10y$652.30$4,052.72
Total dividends collected$4.2K$20.9K
Payment frequencyquarterlyquarterly
SectorConsumer DiscretionaryConsumer Staples

Year-by-year: MCD vs MO ($10,000, DRIP)

YearMCD PortfolioMCD Income/yrMO PortfolioMO Income/yrGap
1$10,726$246.11$10,740$949.88$14.00MO
2$11,514$273.29$11,601$1,086.84$87.00MO
3$12,371$303.73$12,608$1,250.75$237.00MO
4$13,302$337.85$13,792$1,448.20$490.00MO
5$14,317$376.12$15,190$1,687.69$873.00MO
6$15,423$419.10$16,851$1,980.28$1.4KMO
7$16,631$467.42$18,838$2,340.48$2.2KMO
8$17,951$521.82$21,230$2,787.44$3.3KMO
9$19,396$583.12$24,130$3,346.72$4.7KMO
10$20,979$652.30$27,676$4,052.72$6.7KMO

MCD vs MO: Complete Analysis 2026

MCDConsumer Discretionary

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.

Full MCD Calculator →

MOConsumer Staples

Altria is a Dividend King with 54+ consecutive years of dividend increases — one of the longest streaks in American corporate history. While cigarette volumes decline, pricing power and new product categories (oral nicotine pouches via NJOY) support cash flows. The near-9% yield is among the highest in the S&P 500.

Full MO Calculator →

Frequently Asked Questions

Is MCD or MO better for dividend income in 2026?
MCD currently offers a 2.27% yield (6.68/share/year) while MO offers 9.11% (4.08/share/year). MO 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 MO earn per year?
With $10,000 invested today: MCD pays approximately $227/year. MO pays approximately $911/year. With DRIP reinvestment over 10 years, these grow to $652/year (MCD) and $4,053/year (MO).
Does MCD or MO pay monthly dividends?
MCD pays quarterly dividends. MO 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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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.