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.
HD or MCD — which is better?
MCD wins this comparison 3–2 across 6 dimensions. MCD yields 3.08% — higher than HD's 2.93% — and carries a 7.8/10 dividend safety score (Solid) vs 7.0/10 for HD (Solid). 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.
On dividend safety, MCD scores 7.8/10 (Solid) vs 7.0/10 (Solid) for HD — MCD has a stronger composite of payout coverage, yield zone, and dividend trend signals. On yield, MCD's 3.08% vs 2.93% represents a $150 annual income gap on $100,000 invested.
Scorecard at a glance
| Dimension | HD | MCD | Winner |
|---|---|---|---|
| Yield | 2.93% | 3.08% | MCD wins |
| Dividend safety | 7.0/10 | 7.8/10 | MCD wins |
| Growth trend | +0.52% vs 5y | +0.83% vs 5y | HD wins |
| Volatility (beta) | 1.00 | 0.45 | MCD wins |
| Scale | $328.2B | $182.1B | HD wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 3 wins | MCD wins |
Dimension by dimension
MCD wins on yield (3.08% vs 2.93%)
On a $10,000 investment that's about $15 more in annual dividend income before taxes — though higher yield often comes with higher risk.
MCD's higher yield (3.08%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus HD's 2.93% — especially if the higher yield is driven by covered calls or a falling share price.
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 (7.8/10) scores 0.8 points higher than HD (7.0/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
HD shows healthier dividend-vs-price trend
HD's yield is 0.52% above its 5y average, versus 0.83% for MCD. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
MCD is less volatile (beta 0.45 vs 1.00)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
HD is 1.8× 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.
Full breakdown per ticker: are HD dividends qualified and are MCD dividends qualified — each with the after-tax income at every federal bracket.
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
HD or MCD — which is better?
MCD is better on our scoring, winning 3–2 across six dimensions: yield, dividend safety, growth, 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.
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 2.93% and MCD yields 3.08%. On a $10,000 investment that's about $15 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?
HD's yield is 0.52% above its 5y average, versus 0.83% for MCD. 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.
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Compare both against your actual holdings
Put HD and MCD into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding MCD diversifies you or just duplicates what you hold. No account, no download.