DE vs NDSN: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
DE yields 0.02% more than NDSN. In dollar terms, DE pays $6.48/share vs NDSN's $3.16/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%.
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: The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x.
NDSN: The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DE vs NDSN 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 $298.62 per share, $10,000 buys about 33.5 shares of Nordson Corp (NDSN). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $106 per year — about $9 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of DE or NDSN 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.
Nordson Corp (NDSN) has raised its dividend about 21.9% a year over the past five years. If that pace held, the $107 per year that $10,000 generates today at the current 1.07% yield would reach $777 per year by 2036 — a 7.8% yield on the original cost.
On those trailing rates, NDSN pays more in 2036: $777 versus $388 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can DE and NDSN 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).
Nordson Corp (NDSN) earns $8.50 per share against $3.16 paid out in dividends — 2.7x coverage (a 37% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, DE or NDSN?
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 $89 a month from Nordson Corp (NDSN) at 1.07%.
With a decade or more before the income is needed, NDSN's faster dividend growth (21.9% 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; NDSN has raised its dividend 1 consecutive year.
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 $864/yr in NDSN 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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