MCD vs ULTY: Dividend Yield, Growth & Safety Comparison
Mcdonalds Corp (MCD) from Consumer Discretionary and YieldMax Ultra Option Income Strategy ETF (ULTY) from N/A offer different dividend profiles for income-focused portfolios. ULTY offers a significantly higher 137.83% yield compared to MCD's 2.17%, a gap of 135.66%. For dividend growth, MCD leads with a 5-year CAGR of 8.1% versus ULTY's -88.4%. MCD is a Dividend King with 50 years of consecutive increases.
Key Metrics Comparison
| Metric | MCD | ULTY |
|---|
| Dividend Yield | 2.17% | 137.83% |
| Annual Dividend | $7.08 | $45.23 |
| 5-Year CAGR | 8.1% | -88.4% |
| Payout Ratio | 60% | N/A |
| Consecutive Years | 50 | 0 |
| Price | $327.89 | $34.47 |
Yield Comparison
YieldMax Ultra Option Income Strategy ETF (ULTY) currently yields 137.83%, which is high for the broader market. That's 135.66% more than Mcdonalds Corp (MCD), which yields 2.17%. In dollar terms, ULTY pays $45.23/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 ULTY's -88.4%. 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%. ULTY: Dividend growth has been steady, with a 3-year CAGR of -88.4% and a 5-year CAGR of -88.4% (10-year: -88.4%).
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. ULTY's dividend safety is rated "Unknown." Insufficient data to assess dividend safety.
Income Comparison
A $10,000 investment in ULTY generates approximately $13783/year in dividend income, compared to $217/year from MCD — a difference of $13566/year. At $100,000, that gap widens to $135660/year.
Verdict
- Best for income: ULTY
- Best for growth: MCD
- Best for safety: MCD
Frequently Asked Questions
Which has a higher dividend yield, MCD or ULTY?
YieldMax Ultra Option Income Strategy ETF (ULTY) has a higher dividend yield of 137.83% compared to Mcdonalds Corp (MCD) at 2.17%.
Is MCD or ULTY a better dividend growth stock?
Mcdonalds Corp has the stronger dividend growth with a 5-year CAGR of 8.1%, compared to YieldMax Ultra Option Income Strategy ETF's -88.4%.
Which is safer for dividend income, MCD or ULTY?
Mcdonalds Corp's dividend safety is rated "Moderate" while YieldMax Ultra 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 ULTY generate?
A $10,000 investment in MCD generates approximately $217/year in dividends, while the same amount in ULTY generates about $13783/year.
Is MCD or ULTY a Dividend Aristocrat?
Mcdonalds Corp is a Dividend King with 50 consecutive years of increases. YieldMax Ultra Option Income Strategy ETF does not currently qualify for aristocrat status.
MCD vs ULTY: which is better for retirement income?
It depends on your priorities. ULTY for current income, MCD for dividend growth, MCD for safety. Many retirement investors hold both for diversification.
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