GPC vs MCD: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) and Mcdonalds Corp (MCD) are both in the Consumer Discretionary sector, making them natural rivals for dividend investors. GPC edges ahead on yield at 2.79% versus MCD's 2.17%. For dividend growth, MCD leads with a 5-year CAGR of 8.1% versus GPC's 6.0%. Both stocks carry a "Moderate" dividend safety rating. GPC is a Dividend Aristocrat while MCD is a Dividend King.
Key Metrics Comparison
| Metric | GPC | MCD |
|---|
| Dividend Yield | 2.79% | 2.17% |
| Annual Dividend | $4.09 | $7.08 |
| 5-Year CAGR | 6.0% | 8.1% |
| Payout Ratio | 70% | 60% |
| Consecutive Years | 39 | 50 |
| Price | $147.18 | $327.89 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.62% more than Mcdonalds Corp (MCD), which yields 2.17%. In dollar terms, GPC pays $4.09/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 GPC's 6.0%. GPC: Dividend growth is slowing — the 3-year CAGR of 4.1% trails the 5-year rate of 6.0% and the 10-year rate of 5.1%. 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
GPC's dividend safety is rated "Moderate." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. 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 GPC's 70%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in GPC generates approximately $279/year in dividend income, compared to $217/year from MCD — a difference of $62/year. At $100,000, that gap widens to $620/year.
Verdict
- Best for income: GPC
- Best for growth: MCD
- Best for safety: MCD
Frequently Asked Questions
Which has a higher dividend yield, GPC or MCD?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Mcdonalds Corp (MCD) at 2.17%.
Is GPC or MCD a better dividend growth stock?
Mcdonalds Corp has the stronger dividend growth with a 5-year CAGR of 8.1%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, GPC or MCD?
Genuine Parts Co's dividend safety is rated "Moderate" while Mcdonalds Corp is rated "Moderate." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. 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 GPC vs MCD generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in MCD generates about $217/year.
Is GPC or MCD a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat (39 years) and Mcdonalds Corp is a Dividend King (50 years).
Which has a lower payout ratio, GPC or MCD?
Mcdonalds Corp has a lower payout ratio of 60% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs MCD: which is better for retirement income?
It depends on your priorities. GPC for current income, MCD for dividend growth, MCD for safety. Many retirement investors hold both for diversification.
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