GPC vs LOW: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) and Lowes Companies Inc (LOW) are both in the Consumer Discretionary sector, making them natural rivals for dividend investors. GPC offers a significantly higher 2.79% yield compared to LOW's 1.65%, a gap of 1.14%. For dividend growth, LOW leads with a 5-year CAGR of 20.9% versus GPC's 6.0%. LOW holds the edge in dividend safety with a "Safe" rating. GPC is a Dividend Aristocrat with 39 years of consecutive increases.
Key Metrics Comparison
| Metric | GPC | LOW |
|---|
| Dividend Yield | 2.79% | 1.65% |
| Annual Dividend | $4.09 | $4.70 |
| 5-Year CAGR | 6.0% | 20.9% |
| Payout Ratio | 70% | 39% |
| Consecutive Years | 39 | 0 |
| Price | $147.18 | $286.71 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 1.14% more than Lowes Companies Inc (LOW), which yields 1.65%. In dollar terms, GPC pays $4.09/share annually versus LOW's $4.70/share.
Dividend Growth
Over the past five years, LOW has grown its dividend at a 20.9% CAGR compared to GPC's 6.0%. 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%. LOW: Dividend growth is slowing — the 3-year CAGR of 20.3% trails the 5-year rate of 20.9% and the 10-year rate of 19.0%.
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. LOW's dividend safety is rated "Safe." The payout ratio of 39% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x. LOW's payout ratio of 39% 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 $165/year from LOW — a difference of $114/year. At $100,000, that gap widens to $1140/year.
Verdict
- Best for income: GPC
- Best for growth: LOW
- Best for safety: LOW
Frequently Asked Questions
Which has a higher dividend yield, GPC or LOW?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Lowes Companies Inc (LOW) at 1.65%.
Is GPC or LOW a better dividend growth stock?
Lowes Companies Inc has the stronger dividend growth with a 5-year CAGR of 20.9%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, GPC or LOW?
Genuine Parts Co's dividend safety is rated "Moderate" while Lowes Companies Inc 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 39% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.
How much income does $10,000 in GPC vs LOW generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in LOW generates about $165/year.
Is GPC or LOW a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat with 39 consecutive years of increases. Lowes Companies Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, GPC or LOW?
Lowes Companies Inc has a lower payout ratio of 39% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs LOW: which is better for retirement income?
It depends on your priorities. GPC for current income, LOW for dividend growth, LOW for safety. Many retirement investors hold both for diversification.
GPC Dividend Analysis | LOW Dividend Analysis | All Comparisons | Comparison Tool