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MCD vs PM: Dividend Comparison 2026

MCD yields 2.27% · PM yields 4.27% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 PM wins by $21.0K 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 →
PM
Philip Morris International
4.27%
Share price
$126.50
Annual div
$5.40
5Y div CAGR
2.8%
Payout ratio
84%
After 10 yrs · $10,000 · DRIP
Portfolio value
$42.0K
Annual income
$721.58
Full PM calculator →

Portfolio growth — MCD vs PM

Annual dividend income

MetricMCDPM
Forward yield2.27%4.27%
Annual dividend / share$6.68$5.40
Payout ratio72%84%
1-year div growth10%3.9%
5-year div CAGR8.5%2.8%
Portfolio after 10y$21.0K$42.0K
Annual income after 10y$652.30$721.58
Total dividends collected$4.2K$5.8K
Payment frequencyquarterlyquarterly
SectorConsumer DiscretionaryConsumer Staples

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

YearMCD PortfolioMCD Income/yrPM PortfolioPM Income/yrGap
1$10,726$246.11$11,679$438.83$953.00PM
2$11,514$273.29$13,596$468.73$2.1KPM
3$12,371$303.73$15,781$499.06$3.4KPM
4$13,302$337.85$18,267$529.79$5.0KPM
5$14,317$376.12$21,093$560.89$6.8KPM
6$15,423$419.10$24,301$592.34$8.9KPM
7$16,631$467.42$27,939$624.14$11.3KPM
8$17,951$521.82$32,059$656.28$14.1KPM
9$19,396$583.12$36,723$688.76$17.3KPM
10$20,979$652.30$41,999$721.58$21.0KPM

MCD vs PM: 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 →

PMConsumer Staples

Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030.

Full PM Calculator →

Frequently Asked Questions

Is MCD or PM better for dividend income in 2026?
MCD currently offers a 2.27% yield (6.68/share/year) while PM offers 4.27% (5.40/share/year). PM 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 PM earn per year?
With $10,000 invested today: MCD pays approximately $227/year. PM pays approximately $427/year. With DRIP reinvestment over 10 years, these grow to $652/year (MCD) and $722/year (PM).
Does MCD or PM pay monthly dividends?
MCD pays quarterly dividends. PM 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.