DE vs PNR: Dividend Yield, Growth & Safety Comparison
Deere & Co (DE) and PENTAIR plc (PNR) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — DE at 1.09% and PNR at 1.01%. Both stocks show similar dividend growth rates, each around 13.5% over the past five years. Both stocks carry a "Safe" dividend safety rating. DE is a Dividend Challenger with 5 years of consecutive increases.
Key Metrics Comparison
| Metric | DE | PNR |
|---|
| Dividend Yield | 1.09% | 1.01% |
| Annual Dividend | $6.48 | $1.00 |
| 5-Year CAGR | 13.5% | 13.6% |
| Payout Ratio | 35% | 25% |
| Consecutive Years | 5 | 0 |
| Price | $606.06 | $101.30 |
Yield Comparison
Deere & Co (DE) currently yields 1.09%, which is modest for the broader market. That's 0.08% more than PENTAIR plc (PNR), which yields 1.01%. In dollar terms, DE pays $6.48/share annually versus PNR's $1.00/share.
Dividend Growth
Over the past five years, PNR has grown its dividend at a 13.6% 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%. PNR: Dividend growth is accelerating — the 3-year CAGR of 23.1% exceeds the 5-year rate of 13.6% and the 10-year rate of 4.4%.
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. PNR'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 3.9x. PNR'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 $101/year from PNR — a difference of $8/year. At $100,000, that gap widens to $80/year.
Verdict
- Best for income: DE
- Best for safety: PNR
Frequently Asked Questions
Which has a higher dividend yield, DE or PNR?
Deere & Co (DE) has a higher dividend yield of 1.09% compared to PENTAIR plc (PNR) at 1.01%.
Is DE or PNR a better dividend growth stock?
PENTAIR plc has the stronger dividend growth with a 5-year CAGR of 13.6%, compared to Deere & Co's 13.5%.
Which is safer for dividend income, DE or PNR?
Deere & Co's dividend safety is rated "Safe" while PENTAIR plc 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 3.9x.
How much income does $10,000 in DE vs PNR generate?
A $10,000 investment in DE generates approximately $109/year in dividends, while the same amount in PNR generates about $101/year.
Is DE or PNR a Dividend Aristocrat?
Deere & Co is a Dividend Challenger with 5 consecutive years of increases. PENTAIR plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, DE or PNR?
PENTAIR plc 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 PNR: which is better for retirement income?
It depends on your priorities. DE for current income, PNR for safety. Many retirement investors hold both for diversification.
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