GPC vs JNJ: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) from Consumer Discretionary and Johnson & Johnson (JNJ) from Health Care offer different dividend profiles for income-focused portfolios. GPC edges ahead on yield at 2.79% versus JNJ's 2.16%. Both stocks show similar dividend growth rates, each around 6.0% over the past five years. JNJ holds the edge in dividend safety with a "Safe" rating. GPC is a Dividend Aristocrat while JNJ is a Dividend King.
Key Metrics Comparison
| Metric | GPC | JNJ |
|---|
| Dividend Yield | 2.79% | 2.16% |
| Annual Dividend | $4.09 | $5.14 |
| 5-Year CAGR | 6.0% | 5.2% |
| Payout Ratio | 70% | 47% |
| Consecutive Years | 39 | 63 |
| Price | $147.18 | $243.53 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.63% more than Johnson & Johnson (JNJ), which yields 2.16%. In dollar terms, GPC pays $4.09/share annually versus JNJ's $5.14/share.
Dividend Growth
Over the past five years, GPC has grown its dividend at a 6.0% CAGR compared to JNJ's 5.2%. 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%. JNJ: Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.2% and the 10-year rate of 5.6%.
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. JNJ's dividend safety is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. JNJ's payout ratio of 47% 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 $216/year from JNJ — a difference of $63/year. At $100,000, that gap widens to $630/year.
Verdict
- Best for income: GPC
- Best for growth: GPC
- Best for safety: JNJ
Frequently Asked Questions
Which has a higher dividend yield, GPC or JNJ?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Johnson & Johnson (JNJ) at 2.16%.
Is GPC or JNJ a better dividend growth stock?
Genuine Parts Co has the stronger dividend growth with a 5-year CAGR of 6.0%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, GPC or JNJ?
Genuine Parts Co's dividend safety is rated "Moderate" while Johnson & Johnson is rated "Safe." 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 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
How much income does $10,000 in GPC vs JNJ generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in JNJ generates about $216/year.
Is GPC or JNJ a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat (39 years) and Johnson & Johnson is a Dividend King (63 years).
Which has a lower payout ratio, GPC or JNJ?
Johnson & Johnson has a lower payout ratio of 47% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs JNJ: which is better for retirement income?
It depends on your priorities. GPC for current income, GPC for dividend growth, JNJ for safety. Many retirement investors hold both for diversification.
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