BDX vs MCD: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | BDX | MCD |
|---|
| Dividend Yield | 2.36% | 2.17% |
| Annual Dividend | $4.20 | $7.08 |
| 5-Year CAGR | 6.2% | 8.1% |
| Payout Ratio | 68% | 60% |
| Consecutive Years | 43 | 50 |
| Price | $177.39 | $327.89 |
Yield Comparison
Becton Dickinson & Co (BDX) currently yields 2.36%, which is solid for the broader market. That's 0.19% more than Mcdonalds Corp (MCD), which yields 2.17%. In dollar terms, BDX pays $4.20/share annually versus MCD's $7.08/share.
Dividend Growth
Over the past five years, MCD has grown its dividend at a 8.1% CAGR compared to BDX's 6.2%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "Moderate." 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. MCD's payout ratio of 60% is more conservative than BDX's 68%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in BDX generates approximately $236/year in dividend income, compared to $217/year from MCD — a difference of $19/year. At $100,000, that gap widens to $190/year.
Verdict
- Best for income: BDX
- Best for growth: MCD
- Best for safety: MCD
Frequently Asked Questions
Which has a higher dividend yield, BDX or MCD?
Becton Dickinson & Co (BDX) has a higher dividend yield of 2.36% compared to Mcdonalds Corp (MCD) at 2.17%.
Is BDX or MCD a better dividend growth stock?
Mcdonalds Corp has the stronger dividend growth with a 5-year CAGR of 8.1%, compared to Becton Dickinson & Co's 6.2%.
Which is safer for dividend income, BDX or MCD?
Becton Dickinson & Co's dividend safety is rated "Moderate" while Mcdonalds Corp is rated "Moderate." 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. 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.
How much income does $10,000 in BDX vs MCD generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in MCD generates about $217/year.
Is BDX or MCD a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and Mcdonalds Corp is a Dividend King (50 years).
Which has a lower payout ratio, BDX or MCD?
Mcdonalds Corp has a lower payout ratio of 60% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs MCD: which is better for retirement income?
It depends on your priorities. BDX for current income, MCD for dividend growth, MCD for safety. Many retirement investors hold both for diversification.
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