DE vs SWK: Dividend Yield, Growth & Safety Comparison
Deere & Co (DE) and Stanley Black & Decker, Inc. (SWK) are both in the Industrials sector, making them natural rivals for dividend investors. SWK offers a significantly higher 3.60% yield compared to DE's 1.09%, a gap of 2.50%. For dividend growth, DE leads with a 5-year CAGR of 13.5% versus SWK's 2.6%. Both stocks carry a "Safe" dividend safety rating. DE is a Dividend Challenger while SWK is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | DE | SWK |
|---|
| Dividend Yield | 1.09% | 3.60% |
| Annual Dividend | $6.48 | $3.30 |
| 5-Year CAGR | 13.5% | 2.6% |
| Payout Ratio | 35% | 1% |
| Consecutive Years | 5 | 28 |
| Price | $606.06 | $91.08 |
Yield Comparison
Stanley Black & Decker, Inc. (SWK) currently yields 3.60%, which is solid for the broader market. That's 2.50% more than Deere & Co (DE), which yields 1.09%. In dollar terms, SWK pays $3.30/share annually versus DE's $6.48/share.
Dividend Growth
Over the past five years, DE has grown its dividend at a 13.5% CAGR compared to SWK's 2.6%. 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%. SWK: Dividend growth is slowing — the 3-year CAGR of 1.2% trails the 5-year rate of 2.6% and the 10-year rate of 4.3%.
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. SWK's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. SWK's payout ratio of 1% is more conservative than DE's 35%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SWK generates approximately $360/year in dividend income, compared to $109/year from DE — a difference of $251/year. At $100,000, that gap widens to $2510/year.
Verdict
- Best for income: SWK
- Best for growth: DE
- Best for safety: SWK
Frequently Asked Questions
Which has a higher dividend yield, DE or SWK?
Stanley Black & Decker, Inc. (SWK) has a higher dividend yield of 3.60% compared to Deere & Co (DE) at 1.09%.
Is DE or SWK a better dividend growth stock?
Deere & Co has the stronger dividend growth with a 5-year CAGR of 13.5%, compared to Stanley Black & Decker, Inc.'s 2.6%.
Which is safer for dividend income, DE or SWK?
Deere & Co's dividend safety is rated "Safe" while Stanley Black & Decker, 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in DE vs SWK generate?
A $10,000 investment in DE generates approximately $109/year in dividends, while the same amount in SWK generates about $360/year.
Is DE or SWK a Dividend Aristocrat?
Deere & Co is a Dividend Challenger (5 years) and Stanley Black & Decker, Inc. is a Dividend Aristocrat (28 years).
Which has a lower payout ratio, DE or SWK?
Stanley Black & Decker, Inc. has a lower payout ratio of 1% compared to Deere & Co's 35%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DE vs SWK: which is better for retirement income?
It depends on your priorities. SWK for current income, DE for dividend growth, SWK for safety. Many retirement investors hold both for diversification.
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