BDX vs SHW: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
BDX yields 1.49% more than SHW. In dollar terms, BDX pays $4.20/share vs SHW's $3.16/share annually.
Dividend Growth
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: 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: The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in BDX vs SHW today?
At $177.39 per share, $10,000 buys about 56.4 shares of Becton Dickinson & Co (BDX). Each share pays $4.20 per year in dividends, so the position starts out generating roughly $237 per year — about $20 a month.
At $368.50 per share, $10,000 buys about 27.1 shares of Sherwin Williams Co (SHW). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $86 per year — about $7 a month.
BDX is the larger income stream from day one: $151 per year more on the same $10,000 invested.
What could $10,000 of BDX or SHW income look like in 10 years?
Becton Dickinson & Co (BDX) has raised its dividend about 6.2% a year over the past five years. If that pace held, the $236 per year that $10,000 generates today at the current 2.36% yield would reach $431 per year by 2036 — a 4.3% yield on the original cost.
Sherwin Williams Co (SHW) has raised its dividend about 9.5% a year over the past five years. If that pace held, the $87 per year that $10,000 generates today at the current 0.87% yield would reach $214 per year by 2036 — a 2.1% yield on the original cost.
On those trailing rates, BDX pays more in 2036: $431 versus $214 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SHW's dividend growth overtake BDX's higher yield?
Not within a realistic holding period. Sherwin Williams Co (SHW) is growing its dividend faster (9.5% vs 6.2% a year), but the starting-yield gap — 2.36% for BDX vs 0.87% for SHW — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, BDX's head start is decisive.
Can BDX and SHW afford their dividends?
Becton Dickinson & Co (BDX) earns $6.12 per share against $4.20 paid out in dividends — 1.5x coverage (a 68% payout ratio).
Sherwin Williams Co (SHW) earns $10.28 per share against $3.16 paid out in dividends — 3.3x coverage (a 31% payout ratio).
SHW's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for BDX if earnings weaken.
Which fits an early-retirement income portfolio better, BDX or SHW?
For income you need right now, Becton Dickinson & Co (BDX) leads: $100,000 invested today pays about $197 a month at the current 2.36% yield, versus $72 a month from Sherwin Williams Co (SHW) at 0.87%.
With a decade or more before the income is needed, SHW's faster dividend growth (9.5% vs 6.2% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: BDX has raised its dividend 43 consecutive years; SHW has raised its dividend 40 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $544/yr in BDX vs $234/yr in SHW by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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