DOV vs SHW: Dividend Yield, Growth & Safety Comparison
DOVER Corp (DOV) from Industrials and Sherwin Williams Co (SHW) from Materials offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — DOV at 0.90% and SHW at 0.87%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus DOV's 1.0%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | DOV | SHW |
|---|
| Dividend Yield | 0.90% | 0.87% |
| Annual Dividend | $2.08 | $3.16 |
| 5-Year CAGR | 1.0% | 9.5% |
| Payout Ratio | 26% | 31% |
| Consecutive Years | 41 | 40 |
| Price | $231.16 | $368.50 |
Yield Comparison
DOVER Corp (DOV) currently yields 0.90%, which is very low for the broader market. Sherwin Williams Co (SHW) yields a nearly identical 0.87%. In dollar terms, DOV pays $2.08/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% 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%). SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
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. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. Both have similar payout ratios — DOV at 26% and SHW at 31%.
Income Comparison
A $10,000 investment in DOV generates approximately $90/year in dividend income, compared to $87/year from SHW — a difference of $3/year. At $100,000, that gap widens to $30/year.
Verdict
- Best for growth: SHW
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, DOV or SHW?
DOVER Corp (DOV) has a higher dividend yield of 0.90% compared to Sherwin Williams Co (SHW) at 0.87%.
Is DOV or SHW a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to DOVER Corp's 1.0%.
Which is safer for dividend income, DOV or SHW?
DOVER Corp's dividend safety is rated "Safe" while Sherwin Williams Co is rated "Safe." 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 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in DOV vs SHW generate?
A $10,000 investment in DOV generates approximately $90/year in dividends, while the same amount in SHW generates about $87/year.
Is DOV or SHW a Dividend Aristocrat?
DOVER Corp is a Dividend Aristocrat (41 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, DOV or SHW?
DOVER Corp has a lower payout ratio of 26% compared to Sherwin Williams Co's 31%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOV vs SHW: which is better for retirement income?
It depends on your priorities. SHW for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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