GPC vs ROST: Dividend Comparison
Dividend data as of
Genuine Parts Co (GPC) and Ross Stores, Inc. (ROST) are both in the Consumer Discretionary sector, making them natural rivals for dividend investors. GPC offers a significantly higher 2.79% yield compared to ROST's 0.82%, a gap of 1.97%. ROST holds the edge in dividend safety with a "Safe" rating. GPC is a Dividend Aristocrat with 39 years of consecutive increases.
Verdict
Yield Analysis
GPC yields 1.97% more than ROST. In dollar terms, GPC pays $4.09/share vs ROST's $1.62/share annually.
Dividend Growth
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: 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.
ROST: The payout ratio of 25% is well within sustainable levels, leaving room for future increases.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in GPC vs ROST today?
At $147.18 per share, $10,000 buys about 67.9 shares of Genuine Parts Co (GPC). Each share pays $4.09 per year in dividends, so the position starts out generating roughly $278 per year — about $23 a month.
At $196.40 per share, $10,000 buys about 50.9 shares of Ross Stores, Inc. (ROST). Each share pays $1.62 per year in dividends, so the position starts out generating roughly $82 per year — about $7 a month.
GPC is the larger income stream from day one: $195 per year more on the same $10,000 invested.
Why is there no dividend growth comparison for ROST?
REWD's dividend database has no five-year growth rate for Ross Stores, Inc. (ROST) — most often because the dividend history is too short to compute one, which is common for companies that began paying dividends only in the past few years.
What the data does show for ROST: a 0.82% current yield and a 25% payout ratio, which leaves ample room to raise the payout from here. Until a multi-year raise history exists, treat any growth assumption for ROST as a guess rather than a trend.
Genuine Parts Co (GPC) is the one with a measurable track record here — dividend raises of about 6.0% a year over the past five years. If a proven raise history matters to you, GPC wins that dimension by default until ROST builds one.
Can GPC and ROST afford their dividends?
Genuine Parts Co (GPC) earns $5.81 per share against $4.09 paid out in dividends — 1.4x coverage (a 70% payout ratio).
Ross Stores, Inc. (ROST) pays out about 25% of its earnings as dividends, which implies roughly 4.0x earnings coverage.
ROST'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 GPC if earnings weaken.
Which fits an early-retirement income portfolio better, GPC or ROST?
For income you need right now, Genuine Parts Co (GPC) leads: $100,000 invested today pays about $232 a month at the current 2.79% yield, versus $69 a month from Ross Stores, Inc. (ROST) at 0.82%.
On consistency: GPC has raised its dividend 39 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 $659/yr in GPC vs $89/yr in ROST by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR (0% where growth history is unavailable). A projection, not a prediction — no price appreciation modeled.
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