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