Dividend comparison
MCD vs YUM: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for McDonald's Corporation and Yum! Brands, Inc., side by side. Updated October 21, 2026.
MCD vs YUM: key differences
The short answer, from the latest data on this page.
- Income. MCD pays more income, yielding 3.07% over the last twelve months versus 1.98% for YUM. That is about $109 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, YUM returned 31.8% versus 13.3% for MCD, with dividends reinvested. $10,000 would have grown to $13,178 in YUM and $11,331 in MCD.
- Risk. MCD has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -31.9%, against -23.1% for YUM.
- Dividend growth. YUM grew its yearly payout 9.2% a year over the last 4 years, versus 8.1% for MCD.
Bottom line: MCD fits better if you care most about more income today. YUM fits better if you care most about stronger 5-year returns, smaller drawdowns and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | MCD McDonald's Corporation | YUM Yum! Brands, Inc. |
|---|---|---|
| Dividend yield (TTM) | 3.07% | 1.98% |
| Dividend / share (TTM) | $7.44 | $2.96 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $1.8600 on Sep 16, 2026 | $0.7500 on Sep 18, 2026 |
| Ex-dividend date | Dec 1, 2026 | Sep 9, 2026 |
| Next payment | $1.9300 on Dec 15, 2026 | — |
| Dividend growth (CAGR) | 8.1% over 4 yrs | 9.2% over 4 yrs |
| Price | $246.52 | $151.60 |
| Payout ratio (TTM) | 59.5% | 36.4% |
| Dividend growth streak | 48 years | 8 years |
| Beta | 0.45 | 0.55 |
| Max drawdown (5Y) | -31.9% | -23.1% |
| Market cap | $171.94B | $41.07B |
| Exchange | NYSE | NYSE |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
MCD
$25.55/mo
$307 /yr at 3.07% yield
YUM
$16.46/mo
$198 /yr at 1.98% yield
Dividend history
Total dividends paid per share in each calendar year. MCD pays quarterly; YUM pays quarterly.
| Year | MCD | YUM |
|---|---|---|
| 2025 | $7.1700 | $2.8400 |
| 2024 | $6.7800 | $2.6800 |
| 2023 | $6.2300 | $2.4200 |
| 2022 | $5.6600 | $2.2800 |
| 2021 | $5.2500 | $2.0000 |
Strategy: Dividend stocks
Individual companies with long records of paying and raising dividends. Comparing two of them comes down to how safe the payout is, measured by the payout ratio and balance sheet, how fast it has grown, and what the business needs to keep earning it. A single stock carries company-specific risk that a fund spreads out.
A single company can cut or suspend its dividend, and one holding can fall far more than a diversified fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $11,331 in MCD and $13,178 in YUM.
| Period | MCD | YUM |
|---|---|---|
| 1 month | -0.69% | 9.86% |
| 3 months | -7.92% | 3.39% |
| Year to date | -19.34% | 1.68% |
| 1 year | -19.42% | 4.31% |
| 3 years | 0.70% | 33.27% |
| 5 years | 13.31% | 31.78% |
- MCD
- YUM
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Quick verdict
MCD fits better if you care most about more income today. YUM fits better if you care most about stronger 5-year returns, smaller drawdowns and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how MCD vs YUM fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is MCD or YUM better for dividend income?
It depends on your goals. MCD currently yields 3.07% Trailing Twelve Months (TTM) while YUM yields 1.98%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between MCD and YUM?
McDonald's Corporation (MCD) is a stock listed on NYSE. Yum! Brands, Inc. (YUM) is a stock listed on NYSE. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which has performed better, MCD or YUM?
Over the last 5 years, YUM has the higher total return with dividends reinvested: MCD returned 13.3% and YUM returned 31.8%. Past performance does not predict future returns.
Which is riskier, MCD or YUM?
Measured by the worst peak-to-trough decline over the last five years, MCD has been riskier: MCD fell as much as 31.9% and YUM as much as 23.1%. Their betas are 0.45 and 0.55.
How often do MCD and YUM pay dividends?
Both pay quarterly. The most recent payments were $1.8600 for MCD and $0.7500 for YUM.
How much income does $10,000 in MCD vs YUM generate?
At current TTM yields, $10,000 in MCD would generate roughly $25.55 per month ($307 annually). The same amount in YUM would produce about $16.46 per month ($198 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both MCD and YUM?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare MCD vs YUM with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how MCD and YUM fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.