DE vs GWW: Dividend Yield, Growth & Safety Comparison
Deere & Co (DE) and W.W. Grainger, Inc. (GWW) are both in the Industrials sector, making them natural rivals for dividend investors. DE edges ahead on yield at 1.09% versus GWW's 0.74%. For dividend growth, GWW leads with a 5-year CAGR of 16.1% versus DE's 13.5%. Both stocks carry a "Safe" dividend safety rating. DE is a Dividend Challenger with 5 years of consecutive increases.
Key Metrics Comparison
| Metric | DE | GWW |
|---|
| Dividend Yield | 1.09% | 0.74% |
| Annual Dividend | $6.48 | $8.83 |
| 5-Year CAGR | 13.5% | 16.1% |
| Payout Ratio | 35% | 25% |
| Consecutive Years | 5 | 0 |
| Price | $606.06 | $1139.68 |
Yield Comparison
Deere & Co (DE) currently yields 1.09%, which is modest for the broader market. That's 0.35% more than W.W. Grainger, Inc. (GWW), which yields 0.74%. In dollar terms, DE pays $6.48/share annually versus GWW's $8.83/share.
Dividend Growth
Over the past five years, GWW has grown its dividend at a 16.1% CAGR compared to DE's 13.5%. DE: Dividend growth is slowing — the 3-year CAGR of 10.4% trails the 5-year rate of 13.5% and the 10-year rate of 11.7%. GWW: Dividend growth is accelerating — the 3-year CAGR of 25.8% exceeds the 5-year rate of 16.1% and the 10-year rate of 10.3%.
Dividend Safety
DE's dividend safety is rated "Safe." The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x. GWW's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x. GWW's payout ratio of 25% is more conservative than DE's 35%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in DE generates approximately $109/year in dividend income, compared to $74/year from GWW — a difference of $35/year. At $100,000, that gap widens to $350/year.
Verdict
- Best for income: DE
- Best for growth: GWW
- Best for safety: GWW
Frequently Asked Questions
Which has a higher dividend yield, DE or GWW?
Deere & Co (DE) has a higher dividend yield of 1.09% compared to W.W. Grainger, Inc. (GWW) at 0.74%.
Is DE or GWW a better dividend growth stock?
W.W. Grainger, Inc. has the stronger dividend growth with a 5-year CAGR of 16.1%, compared to Deere & Co's 13.5%.
Which is safer for dividend income, DE or GWW?
Deere & Co's dividend safety is rated "Safe" while W.W. Grainger, Inc. is rated "Safe." The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x. The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x.
How much income does $10,000 in DE vs GWW generate?
A $10,000 investment in DE generates approximately $109/year in dividends, while the same amount in GWW generates about $74/year.
Is DE or GWW a Dividend Aristocrat?
Deere & Co is a Dividend Challenger with 5 consecutive years of increases. W.W. Grainger, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, DE or GWW?
W.W. Grainger, Inc. has a lower payout ratio of 25% compared to Deere & Co's 35%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DE vs GWW: which is better for retirement income?
It depends on your priorities. DE for current income, GWW for dividend growth, GWW for safety. Many retirement investors hold both for diversification.
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