DE vs NDSN: Dividend Yield, Growth & Safety Comparison
Deere & Co (DE) and Nordson Corp (NDSN) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — DE at 1.09% and NDSN at 1.07%. For dividend growth, NDSN leads with a 5-year CAGR of 21.9% 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 | NDSN |
|---|
| Dividend Yield | 1.09% | 1.07% |
| Annual Dividend | $6.48 | $3.16 |
| 5-Year CAGR | 13.5% | 21.9% |
| Payout Ratio | 35% | 37% |
| Consecutive Years | 5 | 1 |
| Price | $606.06 | $298.62 |
Yield Comparison
Deere & Co (DE) currently yields 1.09%, which is modest for the broader market. Nordson Corp (NDSN) yields a nearly identical 1.07%. In dollar terms, DE pays $6.48/share annually versus NDSN's $3.16/share.
Dividend Growth
Over the past five years, NDSN has grown its dividend at a 21.9% 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%. NDSN: Dividend growth has been steady, with a 3-year CAGR of 22.3% and a 5-year CAGR of 21.9% (10-year: 16.3%).
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. NDSN's dividend safety is rated "Safe." The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. Both have similar payout ratios — DE at 35% and NDSN at 37%.
Income Comparison
A $10,000 investment in DE generates approximately $109/year in dividend income, compared to $107/year from NDSN — a difference of $2/year. At $100,000, that gap widens to $20/year.
Verdict
Frequently Asked Questions
Which has a higher dividend yield, DE or NDSN?
Deere & Co (DE) has a higher dividend yield of 1.09% compared to Nordson Corp (NDSN) at 1.07%.
Is DE or NDSN a better dividend growth stock?
Nordson Corp has the stronger dividend growth with a 5-year CAGR of 21.9%, compared to Deere & Co's 13.5%.
Which is safer for dividend income, DE or NDSN?
Deere & Co's dividend safety is rated "Safe" while Nordson Corp 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 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
How much income does $10,000 in DE vs NDSN generate?
A $10,000 investment in DE generates approximately $109/year in dividends, while the same amount in NDSN generates about $107/year.
Is DE or NDSN a Dividend Aristocrat?
Deere & Co is a Dividend Challenger with 5 consecutive years of increases. Nordson Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, DE or NDSN?
Deere & Co has a lower payout ratio of 35% compared to Nordson Corp's 37%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DE vs NDSN: which is better for retirement income?
It depends on your priorities. NDSN for dividend growth. Many retirement investors hold both for diversification.
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