MCD vs MSTY: Dividend Yield, Growth & Safety Comparison
Mcdonalds Corp (MCD) from Consumer Discretionary and Yieldmax MSTR Option Income Strategy ETF (MSTY) from N/A offer different dividend profiles for income-focused portfolios. MSTY offers a significantly higher 285.70% yield compared to MCD's 2.17%, a gap of 283.53%. For dividend growth, MCD leads with a 5-year CAGR of 8.1% versus MSTY's -72.8%. MCD is a Dividend King with 50 years of consecutive increases.
Key Metrics Comparison
| Metric | MCD | MSTY |
|---|
| Dividend Yield | 2.17% | 285.70% |
| Annual Dividend | $7.08 | $78.13 |
| 5-Year CAGR | 8.1% | -72.8% |
| Payout Ratio | 60% | N/A |
| Consecutive Years | 50 | 0 |
| Price | $327.89 | $24.09 |
Yield Comparison
Yieldmax MSTR Option Income Strategy ETF (MSTY) currently yields 285.70%, which is high for the broader market. That's 283.53% more than Mcdonalds Corp (MCD), which yields 2.17%. In dollar terms, MSTY pays $78.13/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 MSTY's -72.8%. 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%. MSTY: Dividend growth has been steady, with a 3-year CAGR of -72.8% and a 5-year CAGR of -72.8% (10-year: -72.8%).
Dividend Safety
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. MSTY's dividend safety is rated "Unknown." Insufficient data to assess dividend safety.
Income Comparison
A $10,000 investment in MSTY generates approximately $28570/year in dividend income, compared to $217/year from MCD — a difference of $28353/year. At $100,000, that gap widens to $283530/year.
Verdict
- Best for income: MSTY
- Best for growth: MCD
- Best for safety: MCD
Frequently Asked Questions
Which has a higher dividend yield, MCD or MSTY?
Yieldmax MSTR Option Income Strategy ETF (MSTY) has a higher dividend yield of 285.70% compared to Mcdonalds Corp (MCD) at 2.17%.
Is MCD or MSTY a better dividend growth stock?
Mcdonalds Corp has the stronger dividend growth with a 5-year CAGR of 8.1%, compared to Yieldmax MSTR Option Income Strategy ETF's -72.8%.
Which is safer for dividend income, MCD or MSTY?
Mcdonalds Corp's dividend safety is rated "Moderate" while Yieldmax MSTR Option Income Strategy ETF is rated "Unknown." 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 MCD vs MSTY generate?
A $10,000 investment in MCD generates approximately $217/year in dividends, while the same amount in MSTY generates about $28570/year.
Is MCD or MSTY a Dividend Aristocrat?
Mcdonalds Corp is a Dividend King with 50 consecutive years of increases. Yieldmax MSTR Option Income Strategy ETF does not currently qualify for aristocrat status.
MCD vs MSTY: which is better for retirement income?
It depends on your priorities. MSTY for current income, MCD for dividend growth, MCD for safety. Many retirement investors hold both for diversification.
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