BDX vs MCD: Dividend Comparison
Dividend data as of
Becton Dickinson & Co (BDX) from Health Care and Mcdonalds Corp (MCD) from Consumer Discretionary offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — BDX at 2.36% and MCD at 2.17%. For dividend growth, MCD leads with a 5-year CAGR of 8.1% versus BDX's 6.2%. Both stocks carry a "Moderate" dividend safety rating. BDX is a Dividend Aristocrat while MCD is a Dividend King.
Verdict
Yield Analysis
BDX yields 0.19% more than MCD. In dollar terms, BDX pays $4.20/share vs MCD's $7.08/share annually.
Dividend Growth
BDX: Dividend growth has been steady, with a 3-year CAGR of 6.5% and a 5-year CAGR of 6.2% (10-year: 5.2%).
MCD: Dividend growth is slowing — the 3-year CAGR of 7.3% trails the 5-year rate of 8.1% and the 10-year rate of 7.9%.
Dividend Safety
BDX: The payout ratio of 68% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
MCD: The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in BDX vs MCD today?
At $177.39 per share, $10,000 buys about 56.4 shares of Becton Dickinson & Co (BDX). Each share pays $4.20 per year in dividends, so the position starts out generating roughly $237 per year — about $20 a month.
At $327.89 per share, $10,000 buys about 30.5 shares of Mcdonalds Corp (MCD). Each share pays $7.08 per year in dividends, so the position starts out generating roughly $216 per year — about $18 a month.
BDX is the larger income stream from day one: $21 per year more on the same $10,000 invested.
What could $10,000 of BDX or MCD income look like in 10 years?
Becton Dickinson & Co (BDX) has raised its dividend about 6.2% a year over the past five years. If that pace held, the $236 per year that $10,000 generates today at the current 2.36% yield would reach $431 per year by 2036 — a 4.3% yield on the original cost.
Mcdonalds Corp (MCD) has raised its dividend about 8.1% a year over the past five years. If that pace held, the $217 per year that $10,000 generates today at the current 2.17% yield would reach $473 per year by 2036 — a 4.7% yield on the original cost.
On those trailing rates, MCD pays more in 2036: $473 versus $431 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would MCD's dividend growth overtake BDX's higher yield?
Mcdonalds Corp (MCD) yields less today (2.17% vs 2.36%) but has grown its dividend faster — 8.1% vs 6.2% a year over the past five years. If both trends continued, a $10,000 position in MCD would start out-earning the same position in BDX around 2031 (roughly 5 years from now), paying about $321 per year at the crossover. Before that point, BDX pays more each year; after it, the gap compounds in MCD's favor.
Can BDX and MCD afford their dividends?
Becton Dickinson & Co (BDX) earns $6.12 per share against $4.20 paid out in dividends — 1.5x coverage (a 68% payout ratio).
Mcdonalds Corp (MCD) earns $11.72 per share against $7.08 paid out in dividends — 1.7x coverage (a 60% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, BDX or MCD?
For income you need right now, Becton Dickinson & Co (BDX) leads: $100,000 invested today pays about $197 a month at the current 2.36% yield, versus $181 a month from Mcdonalds Corp (MCD) at 2.17%.
With a decade or more before the income is needed, MCD's faster dividend growth (8.1% vs 6.2% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: BDX has raised its dividend 43 consecutive years; MCD has raised its dividend 50 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $544/yr in BDX vs $587/yr in MCD by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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