DE vs GWW: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
DE yields 0.35% more than GWW. In dollar terms, DE pays $6.48/share vs GWW's $8.83/share annually.
Dividend Growth
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: The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x.
GWW: The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DE vs GWW today?
At $606.06 per share, $10,000 buys about 16.5 shares of Deere & Co (DE). Each share pays $6.48 per year in dividends, so the position starts out generating roughly $107 per year — about $9 a month.
At $1139.68 per share, $10,000 buys about 8.8 shares of W.W. Grainger, Inc. (GWW). Each share pays $8.83 per year in dividends, so the position starts out generating roughly $77 per year — about $6 a month.
DE is the larger income stream from day one: $29 per year more on the same $10,000 invested.
What could $10,000 of DE or GWW income look like in 10 years?
Deere & Co (DE) has raised its dividend about 13.5% a year over the past five years. If that pace held, the $109 per year that $10,000 generates today at the current 1.09% yield would reach $388 per year by 2036 — a 3.9% yield on the original cost.
W.W. Grainger, Inc. (GWW) has raised its dividend about 16.1% a year over the past five years. If that pace held, the $74 per year that $10,000 generates today at the current 0.74% yield would reach $331 per year by 2036 — a 3.3% yield on the original cost.
On those trailing rates, DE pays more in 2036: $388 versus $331 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would GWW's dividend growth overtake DE's higher yield?
W.W. Grainger, Inc. (GWW) yields less today (0.74% vs 1.09%) but has grown its dividend faster — 16.1% vs 13.5% a year over the past five years. If both trends continued, a $10,000 position in GWW would start out-earning the same position in DE around 2044 (roughly 18 years from now), paying about $1,092 per year at the crossover. Before that point, DE pays more each year; after it, the gap compounds in GWW's favor.
Can DE and GWW afford their dividends?
Deere & Co (DE) earns $18.51 per share against $6.48 paid out in dividends — 2.9x coverage (a 35% payout ratio).
W.W. Grainger, Inc. (GWW) earns $35.35 per share against $8.83 paid out in dividends — 4.0x coverage (a 25% payout ratio).
GWW'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 DE if earnings weaken.
Which fits an early-retirement income portfolio better, DE or GWW?
For income you need right now, Deere & Co (DE) leads: $100,000 invested today pays about $91 a month at the current 1.09% yield, versus $62 a month from W.W. Grainger, Inc. (GWW) at 0.74%.
With a decade or more before the income is needed, GWW's faster dividend growth (16.1% vs 13.5% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: DE has raised its dividend 5 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 $433/yr in DE vs $356/yr in GWW 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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