DOV vs GPC: Dividend Yield, Growth & Safety Comparison
DOVER Corp (DOV) from Industrials and Genuine Parts Co (GPC) from Consumer Discretionary offer different dividend profiles for income-focused portfolios. GPC offers a significantly higher 2.79% yield compared to DOV's 0.90%, a gap of 1.89%. For dividend growth, GPC leads with a 5-year CAGR of 6.0% versus DOV's 1.0%. DOV holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | DOV | GPC |
|---|
| Dividend Yield | 0.90% | 2.79% |
| Annual Dividend | $2.08 | $4.09 |
| 5-Year CAGR | 1.0% | 6.0% |
| Payout Ratio | 26% | 70% |
| Consecutive Years | 41 | 39 |
| Price | $231.16 | $147.18 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 1.89% more than DOVER Corp (DOV), which yields 0.90%. In dollar terms, GPC pays $4.09/share annually versus DOV's $2.08/share.
Dividend Growth
Over the past five years, GPC has grown its dividend at a 6.0% CAGR compared to DOV's 1.0%. DOV: Dividend growth has been steady, with a 3-year CAGR of 1.0% and a 5-year CAGR of 1.0% (10-year: 4.5%). GPC: Dividend growth is slowing — the 3-year CAGR of 4.1% trails the 5-year rate of 6.0% and the 10-year rate of 5.1%.
Dividend Safety
DOV's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. GPC's dividend safety is rated "Moderate." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. DOV's payout ratio of 26% is more conservative than GPC's 70%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in GPC generates approximately $279/year in dividend income, compared to $90/year from DOV — a difference of $189/year. At $100,000, that gap widens to $1890/year.
Verdict
- Best for income: GPC
- Best for growth: GPC
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, DOV or GPC?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to DOVER Corp (DOV) at 0.90%.
Is DOV or GPC a better dividend growth stock?
Genuine Parts Co has the stronger dividend growth with a 5-year CAGR of 6.0%, compared to DOVER Corp's 1.0%.
Which is safer for dividend income, DOV or GPC?
DOVER Corp's dividend safety is rated "Safe" while Genuine Parts Co is rated "Moderate." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in DOV vs GPC generate?
A $10,000 investment in DOV generates approximately $90/year in dividends, while the same amount in GPC generates about $279/year.
Is DOV or GPC a Dividend Aristocrat?
DOVER Corp is a Dividend Aristocrat (41 years) and Genuine Parts Co is a Dividend Aristocrat (39 years).
Which has a lower payout ratio, DOV or GPC?
DOVER Corp has a lower payout ratio of 26% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOV vs GPC: which is better for retirement income?
It depends on your priorities. GPC for current income, GPC for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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