BDX vs DOV: Dividend Yield, Growth & Safety Comparison
Becton Dickinson & Co (BDX) from Health Care and DOVER Corp (DOV) from Industrials offer different dividend profiles for income-focused portfolios. BDX offers a significantly higher 2.36% yield compared to DOV's 0.90%, a gap of 1.46%. For dividend growth, BDX leads with a 5-year CAGR of 6.2% versus DOV's 1.0%. DOV holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | BDX | DOV |
|---|
| Dividend Yield | 2.36% | 0.90% |
| Annual Dividend | $4.20 | $2.08 |
| 5-Year CAGR | 6.2% | 1.0% |
| Payout Ratio | 68% | 26% |
| Consecutive Years | 43 | 41 |
| Price | $177.39 | $231.16 |
Yield Comparison
Becton Dickinson & Co (BDX) currently yields 2.36%, which is solid for the broader market. That's 1.46% more than DOVER Corp (DOV), which yields 0.90%. In dollar terms, BDX pays $4.20/share annually versus DOV's $2.08/share.
Dividend Growth
Over the past five years, BDX has grown its dividend at a 6.2% CAGR compared to DOV's 1.0%. 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%). DOV: Dividend growth has been steady, with a 3-year CAGR of 1.0% and a 5-year CAGR of 1.0% (10-year: 4.5%).
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. DOV's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. DOV's payout ratio of 26% 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 $90/year from DOV — a difference of $146/year. At $100,000, that gap widens to $1460/year.
Verdict
- Best for income: BDX
- Best for growth: BDX
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, BDX or DOV?
Becton Dickinson & Co (BDX) has a higher dividend yield of 2.36% compared to DOVER Corp (DOV) at 0.90%.
Is BDX or DOV a better dividend growth stock?
Becton Dickinson & Co has the stronger dividend growth with a 5-year CAGR of 6.2%, compared to DOVER Corp's 1.0%.
Which is safer for dividend income, BDX or DOV?
Becton Dickinson & Co's dividend safety is rated "Moderate" while DOVER Corp is rated "Safe." 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 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
How much income does $10,000 in BDX vs DOV generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in DOV generates about $90/year.
Is BDX or DOV a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and DOVER Corp is a Dividend Aristocrat (41 years).
Which has a lower payout ratio, BDX or DOV?
DOVER Corp has a lower payout ratio of 26% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs DOV: which is better for retirement income?
It depends on your priorities. BDX for current income, BDX for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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