DOV vs SHW: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
DOV yields 0.03% more than SHW. In dollar terms, DOV pays $2.08/share vs SHW's $3.16/share annually.
Dividend Growth
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: The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
SHW: The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DOV vs SHW today?
At $231.16 per share, $10,000 buys about 43.3 shares of DOVER Corp (DOV). Each share pays $2.08 per year in dividends, so the position starts out generating roughly $90 per year — about $7 a month.
At $368.50 per share, $10,000 buys about 27.1 shares of Sherwin Williams Co (SHW). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $86 per year — about $7 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 DOV or SHW income look like in 10 years?
DOVER Corp (DOV) has raised its dividend about 1.0% a year over the past five years. If that pace held, the $90 per year that $10,000 generates today at the current 0.90% yield would reach $99 per year by 2036 — a 1.0% yield on the original cost.
Sherwin Williams Co (SHW) has raised its dividend about 9.5% a year over the past five years. If that pace held, the $87 per year that $10,000 generates today at the current 0.87% yield would reach $214 per year by 2036 — a 2.1% yield on the original cost.
On those trailing rates, SHW pays more in 2036: $214 versus $99 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can DOV and SHW afford their dividends?
DOVER Corp (DOV) earns $7.98 per share against $2.08 paid out in dividends — 3.8x coverage (a 26% payout ratio).
Sherwin Williams Co (SHW) earns $10.28 per share against $3.16 paid out in dividends — 3.3x coverage (a 31% payout ratio).
DOV's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for SHW if earnings weaken.
Which fits an early-retirement income portfolio better, DOV or SHW?
For income you need right now, DOVER Corp (DOV) leads: $100,000 invested today pays about $75 a month at the current 0.90% yield, versus $72 a month from Sherwin Williams Co (SHW) at 0.87%.
With a decade or more before the income is needed, SHW's faster dividend growth (9.5% vs 1.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: DOV has raised its dividend 41 consecutive years; SHW has raised its dividend 40 consecutive years.
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 $109/yr in DOV vs $234/yr in SHW 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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