BDX vs WMT: Dividend Yield, Growth & Safety Comparison
Becton Dickinson & Co (BDX) from Health Care and Walmart Inc. (WMT) from Consumer Staples offer different dividend profiles for income-focused portfolios. BDX offers a significantly higher 2.36% yield compared to WMT's 0.72%, a gap of 1.64%. Both stocks show similar dividend growth rates, each around 6.2% over the past five years. WMT holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | BDX | WMT |
|---|
| Dividend Yield | 2.36% | 0.72% |
| Annual Dividend | $4.20 | $0.91 |
| 5-Year CAGR | 6.2% | 6.4% |
| Payout Ratio | 68% | 32% |
| Consecutive Years | 43 | 43 |
| Price | $177.39 | $133.79 |
Yield Comparison
Becton Dickinson & Co (BDX) currently yields 2.36%, which is solid for the broader market. That's 1.64% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, BDX pays $4.20/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, WMT has grown its dividend at a 6.4% 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%). WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. WMT's payout ratio of 32% 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 $72/year from WMT — a difference of $164/year. At $100,000, that gap widens to $1640/year.
Verdict
- Best for income: BDX
- Best for safety: WMT
Frequently Asked Questions
Which has a higher dividend yield, BDX or WMT?
Becton Dickinson & Co (BDX) has a higher dividend yield of 2.36% compared to Walmart Inc. (WMT) at 0.72%.
Is BDX or WMT a better dividend growth stock?
Walmart Inc. has the stronger dividend growth with a 5-year CAGR of 6.4%, compared to Becton Dickinson & Co's 6.2%.
Which is safer for dividend income, BDX or WMT?
Becton Dickinson & Co's dividend safety is rated "Moderate" while Walmart Inc. 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 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in BDX vs WMT generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in WMT generates about $72/year.
Is BDX or WMT a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and Walmart Inc. is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, BDX or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs WMT: which is better for retirement income?
It depends on your priorities. BDX for current income, WMT for safety. Many retirement investors hold both for diversification.
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