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VYM vs MCD: Dividend Comparison 2026

VYM yields 2.91% · MCD yields 2.27% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 VYM wins by $10.3K in total portfolio value
10 years
VYM
Vanguard High Dividend Yield ETF
2.91%
Share price
$118.40
Annual div
$3.44
5Y div CAGR
7.8%
Payout ratio
45%
After 10 yrs · $10,000 · DRIP
Portfolio value
$31.3K
Annual income
$785.17
Full VYM calculator →
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 →

Portfolio growth — VYM vs MCD

Annual dividend income

MetricVYMMCD
Forward yield2.91%2.27%
Annual dividend / share$3.44$6.68
Payout ratio45%72%
1-year div growth6.2%10%
5-year div CAGR7.8%8.5%
Portfolio after 10y$31.3K$21.0K
Annual income after 10y$785.17$652.30
Total dividends collected$5.2K$4.2K
Payment frequencyquarterlyquarterly
SectorETFConsumer Discretionary

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

YearVYM PortfolioVYM Income/yrMCD PortfolioMCD Income/yrGap
1$11,223$313.20$10,726$246.11+$497.00VYM
2$12,592$347.33$11,514$273.29+$1.1KVYM
3$14,123$385.04$12,371$303.73+$1.8KVYM
4$15,835$426.70$13,302$337.85+$2.5KVYM
5$17,748$472.73$14,317$376.12+$3.4KVYM
6$19,887$523.54$15,423$419.10+$4.5KVYM
7$22,276$579.64$16,631$467.42+$5.6KVYM
8$24,945$641.54$17,951$521.82+$7.0KVYM
9$27,925$709.84$19,396$583.12+$8.5KVYM
10$31,251$785.17$20,979$652.30+$10.3KVYM

VYM vs MCD: Complete Analysis 2026

VYMETF

VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.

Full VYM Calculator →

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 →

Frequently Asked Questions

Is VYM or MCD better for dividend income in 2026?
VYM currently offers a 2.91% yield (3.44/share/year) while MCD offers 2.27% (6.68/share/year). VYM 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 VYM vs MCD earn per year?
With $10,000 invested today: VYM pays approximately $291/year. MCD pays approximately $227/year. With DRIP reinvestment over 10 years, these grow to $785/year (VYM) and $652/year (MCD).
Does VYM or MCD pay monthly dividends?
VYM 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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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.