GPC vs HD: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) and Home Depot, Inc. (HD) are both in the Consumer Discretionary sector, making them natural rivals for dividend investors. GPC edges ahead on yield at 2.79% versus HD's 2.35%. Both stocks carry a "Moderate" dividend safety rating. GPC is a Dividend Aristocrat with 39 years of consecutive increases.
Key Metrics Comparison
| Metric | GPC | HD |
|---|
| Dividend Yield | 2.79% | 2.35% |
| Annual Dividend | $4.09 | $9.20 |
| 5-Year CAGR | 6.0% | N/A |
| Payout Ratio | 70% | 62% |
| Consecutive Years | 39 | N/A |
| Price | $147.18 | $390.99 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.43% more than Home Depot, Inc. (HD), which yields 2.35%. In dollar terms, GPC pays $4.09/share annually versus HD's $9.20/share.
Dividend Growth
GPC has a 5-year dividend CAGR of 6.0%. Growth data is not available for HD. 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
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. HD's dividend safety is rated "Moderate." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. HD's payout ratio of 62% 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 $235/year from HD — a difference of $44/year. At $100,000, that gap widens to $440/year.
Verdict
- Best for income: GPC
- Best for safety: HD
Frequently Asked Questions
Which has a higher dividend yield, GPC or HD?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Home Depot, Inc. (HD) at 2.35%.
Which is safer for dividend income, GPC or HD?
Genuine Parts Co's dividend safety is rated "Moderate" while Home Depot, Inc. 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. The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth.
How much income does $10,000 in GPC vs HD generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in HD generates about $235/year.
Is GPC or HD a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat with 39 consecutive years of increases. Home Depot, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, GPC or HD?
Home Depot, Inc. has a lower payout ratio of 62% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs HD: which is better for retirement income?
It depends on your priorities. GPC for current income, HD for safety. Many retirement investors hold both for diversification.
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