MCD dividend yield: 2.27%. PEP dividend yield: 3.69%. 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. PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
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.
PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
MCD currently offers a 2.27% yield (6.68/share/year) while PEP offers 3.69% (5.42/share/year). PEP 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 PEP earn per year?
With $10,000 invested today: MCD pays approximately $227/year. PEP pays approximately $369/year. With DRIP reinvestment over 10 years, these grow to $652/year (MCD) and $1,035/year (PEP).
Does MCD or PEP pay monthly dividends?
MCD pays quarterly dividends. PEP pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
📬
Get this MCD vs PEP comparison by email
Save your analysis + get weekly dividend insights. Free forever.