BDX vs GPC: Dividend Yield, Growth & Safety Comparison
Becton Dickinson & Co (BDX) from Health Care and Genuine Parts Co (GPC) from Consumer Discretionary offer different dividend profiles for income-focused portfolios. GPC edges ahead on yield at 2.79% versus BDX's 2.36%. Both stocks show similar dividend growth rates, each around 6.2% over the past five years. Both stocks carry a "Moderate" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | BDX | GPC |
|---|
| Dividend Yield | 2.36% | 2.79% |
| Annual Dividend | $4.20 | $4.09 |
| 5-Year CAGR | 6.2% | 6.0% |
| Payout Ratio | 68% | 70% |
| Consecutive Years | 43 | 39 |
| Price | $177.39 | $147.18 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.43% more than Becton Dickinson & Co (BDX), which yields 2.36%. In dollar terms, GPC pays $4.09/share annually versus BDX's $4.20/share.
Dividend Growth
Over the past five years, BDX has grown its dividend at a 6.2% CAGR compared to GPC's 6.0%. 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%). 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%.
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. 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. Both have similar payout ratios — BDX at 68% and GPC at 70%.
Income Comparison
A $10,000 investment in GPC generates approximately $279/year in dividend income, compared to $236/year from BDX — a difference of $43/year. At $100,000, that gap widens to $430/year.
Verdict
Frequently Asked Questions
Which has a higher dividend yield, BDX or GPC?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Becton Dickinson & Co (BDX) at 2.36%.
Is BDX or GPC a better dividend growth stock?
Becton Dickinson & Co has the stronger dividend growth with a 5-year CAGR of 6.2%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, BDX or GPC?
Becton Dickinson & Co's dividend safety is rated "Moderate" while Genuine Parts Co 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 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in BDX vs GPC generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in GPC generates about $279/year.
Is BDX or GPC a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and Genuine Parts Co is a Dividend Aristocrat (39 years).
Which has a lower payout ratio, BDX or GPC?
Becton Dickinson & Co has a lower payout ratio of 68% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs GPC: which is better for retirement income?
It depends on your priorities. GPC for current income. Many retirement investors hold both for diversification.
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