BDX vs SHW: Dividend Yield, Growth & Safety Comparison
Becton Dickinson & Co (BDX) from Health Care and Sherwin Williams Co (SHW) from Materials offer different dividend profiles for income-focused portfolios. BDX offers a significantly higher 2.36% yield compared to SHW's 0.87%, a gap of 1.49%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus BDX's 6.2%. SHW holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | BDX | SHW |
|---|
| Dividend Yield | 2.36% | 0.87% |
| Annual Dividend | $4.20 | $3.16 |
| 5-Year CAGR | 6.2% | 9.5% |
| Payout Ratio | 68% | 31% |
| Consecutive Years | 43 | 40 |
| Price | $177.39 | $368.50 |
Yield Comparison
Becton Dickinson & Co (BDX) currently yields 2.36%, which is solid for the broader market. That's 1.49% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, BDX pays $4.20/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% CAGR compared to BDX's 6.2%. 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%). SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
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. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. SHW's payout ratio of 31% 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 $87/year from SHW — a difference of $149/year. At $100,000, that gap widens to $1490/year.
Verdict
- Best for income: BDX
- Best for growth: SHW
- Best for safety: SHW
Frequently Asked Questions
Which has a higher dividend yield, BDX or SHW?
Becton Dickinson & Co (BDX) has a higher dividend yield of 2.36% compared to Sherwin Williams Co (SHW) at 0.87%.
Is BDX or SHW a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to Becton Dickinson & Co's 6.2%.
Which is safer for dividend income, BDX or SHW?
Becton Dickinson & Co's dividend safety is rated "Moderate" while Sherwin Williams Co 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 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in BDX vs SHW generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in SHW generates about $87/year.
Is BDX or SHW a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, BDX or SHW?
Sherwin Williams Co has a lower payout ratio of 31% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs SHW: which is better for retirement income?
It depends on your priorities. BDX for current income, SHW for dividend growth, SHW for safety. Many retirement investors hold both for diversification.
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