Computed head-to-head · 6 dimensions
HD vs MCD
The Home Depot, Inc. versus McDonald's Corporation — yield, safety, growth trend, cost, scale, and tax treatment.
MCD wins 3–2 on our six-dimension comparison, but HD can still be the better fit depending on your priorities — see each dimension below.
Scorecard at a glance
| Dimension | HD | MCD | Winner |
|---|---|---|---|
| Yield | 3.13% | 2.73% | HD wins |
| Dividend safety | 7.0/10 | 7.8/10 | MCD wins |
| Growth trend | +0.77% vs 5y | +0.51% vs 5y | MCD wins |
| Volatility (beta) | 1.00 | 0.42 | MCD wins |
| Scale | $296.3B | $192.9B | HD wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 3 wins | MCD wins |
Dimension by dimension
HD wins on yield (3.13% vs 2.73%)
On a $10,000 investment that's about $40 more in annual dividend income before taxes — though higher yield often comes with higher risk.
MCD wins on safety (7.8/10 vs 7.0/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. MCD scores better on the weighted average of those factors.
MCD shows healthier dividend-vs-price trend
MCD's yield is 0.51% above its 5y average, versus 0.77% for HD. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
MCD is less volatile (beta 0.42 vs 1.00)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
HD is 1.5× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice.Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
Which is better for income, HD or MCD?
MCD wins 3–2 on our six-dimension comparison, but HD can still be the better fit depending on your priorities — see each dimension below.
HD vs MCD: which has a higher dividend yield?
HD yields 3.13% and MCD yields 2.73%. On a $10,000 investment that's about $40 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is HD or MCD a safer dividend in 2026?
HD scores 7.0/10 (Solid) on the Infnits dividend safety scale. MCD scores 7.8/10 (Solid). MCD is the safer pick on our scoring model.
Which has better dividend growth, HD or MCD?
MCD's yield is 0.51% above its 5y average, versus 0.77% for HD. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
HD vs MCD: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Already own HD or MCD? See if the other adds anything.
Connect your brokerage and Infnits checks whether adding MCD to your existing portfolio actually diversifies — or just duplicates exposure (ETF look-through included).
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