Is MCD or PAA a better dividend investment in 2026?

MCD currently yields 2.27% with a 8.5% 5-year dividend growth rate. PAA yields 4.00% with 5% growth. The better choice depends on your goal: PAA offers higher current income.

What is the dividend yield difference between MCD and PAA?

MCD has a forward dividend yield of 2.27% ($6.68/share annually). PAA yields 4.00% ($2.00/share annually). The yield gap is 1.73 percentage points.

Home › Compare › MCD vs PAA

MCD vs PAA: Dividend Comparison 2026

MCD yields 2.27% · PAA yields 4.00%● Live data

vsPost on X →

After 10 years · $10,000 invested · DRIP enabled

🏆 PAA wins by $7.1K in total portfolio value

INVESTMENT

TIME HORIZON10 years

MCD

McDonald's Corporation

● Live price

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 →

PAA

● Live price

4.00%

Share price

$50.00

Annual div

$2.00

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$28.0K

Annual income

$899.19

Full PAA calculator →

Portfolio growth — MCD vs PAA

📍 PAA pulled ahead of the other in Year 1

Annual dividend income

🛡️

Recession Test — Did They Cut Dividends?

How each stock treated shareholders during the 3 biggest crises of the last 20 years

Crisis Period	MCD	PAA
2008–2009 GFC	— No data	— No data
2020 Q1–Q2 COVID	— No data	— No data
2022 Q4 Rate Hike	— No data	— No data

Based on dividend payment history. "Increased" = dividend grew during crisis. "Maintained" = held within 3%. "Cut" = reduced by more than 3%.

📅

Dividend Calendar Overlap

Combined, MCD + PAA cover 0 of 12 months — good coverage

Jan

—

Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

—

Sep

—

Oct

—

Nov

—

Dec

—

MCD pays

PAA pays

Both pay

Neither

💰

Tax Bracket Optimizer

Which stock is actually better after tax? Adjust your rate to find out.

MCD

Annual income on $10K today (after 15% tax)

$192.80/yr

After 10yr DRIP, annual income (after tax)

$554.45/yr

PAA

Annual income on $10K today (after 15% tax)

$340.00/yr

After 10yr DRIP, annual income (after tax)

$764.31/yr

At 15% tax rate, PAA beats the other by $209.86/year in after-tax income after 10 years on $10,000

⚖️

Lazy Portfolio Split Optimizer

What's the optimal mix of MCD + PAA for your $10,000?

MCD: 50%PAA: 50%

100% PAA50/50100% MCD

Portfolio after 10yr

$24.5K

Annual income

$775.75/yr

Blended yield

3.16%

🏛️

Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

MCD buys

PAA buys

No recent congressional trades found for MCD or PAA in the last 90 days.

STOCK Act mandates disclosure within 45 days of transaction. Data via FMP.Full tracker →

MetricMCDPAA

Forward yield	2.27%	4.00% ✓
Annual dividend / share	$6.68 ✓	$2.00
Payout ratio	72%	50% ✓
1-year div growth	10% ✓	5%
5-year div CAGR	8.5% ✓	5%
Portfolio after 10y	$21.0K	$28.0K ✓
Annual income after 10y	$652.30	$899.19 ✓
Total dividends collected	$4.2K	$6.4K ✓
Payment frequency	quarterly	quarterly
Sector	Consumer Discretionary	Stock

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

Year	MCD Portfolio	MCD Income/yr	PAA Portfolio	PAA Income/yr	Gap
1← crossover	$10,726	$246.11	$11,120	$420.00	$394.00 → PAA
2	$11,514	$273.29	$12,357	$458.31	$843.00 → PAA
3	$12,371	$303.73	$13,721	$499.76	$1.4K → PAA
4	$13,302	$337.85	$15,227	$544.58	$1.9K → PAA
5	$14,317	$376.12	$16,885	$593.02	$2.6K → PAA
6	$15,423	$419.10	$18,713	$645.34	$3.3K → PAA
7	$16,631	$467.42	$20,724	$701.81	$4.1K → PAA
8	$17,951	$521.82	$22,938	$762.73	$5.0K → PAA
9	$19,396	$583.12	$25,372	$828.41	$6.0K → PAA
10	$20,979	$652.30	$28,047	$899.19	$7.1K → PAA

MCD vs PAA: Complete Analysis 2026

MCD — Consumer 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 →

PAA — Stock

PAA is a dividend-paying stock. Use this calculator to estimate your future dividend income, DRIP compounding returns, and passive income potential from investing in PAA shares.

Full PAA Calculator →

📬

Get this MCD vs PAA comparison by email

Save your analysis + weekly dividend insights. Free forever.

More comparisons

MCD vs KO MCD vs YUM MCD vs QSR MCD vs SBUX MCD vs DRI MCD vs SCHD MCD vs JEPI MCD vs O

⚠️ Educational purposes only. Not financial advice. Congressional trades sourced from SEC STOCK Act filings via FMP. Past performance does not guarantee future results.