GPC vs ROST: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | GPC | ROST |
|---|
| Dividend Yield | 2.79% | 0.82% |
| Annual Dividend | $4.09 | $1.62 |
| 5-Year CAGR | 6.0% | N/A |
| Payout Ratio | 70% | 25% |
| Consecutive Years | 39 | N/A |
| Price | $147.18 | $196.40 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 1.97% more than Ross Stores, Inc. (ROST), which yields 0.82%. In dollar terms, GPC pays $4.09/share annually versus ROST's $1.62/share.
Dividend Growth
GPC has a 5-year dividend CAGR of 6.0%. Growth data is not available for ROST. 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. ROST's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. ROST's payout ratio of 25% 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 $82/year from ROST — a difference of $197/year. At $100,000, that gap widens to $1970/year.
Verdict
- Best for income: GPC
- Best for safety: ROST
Frequently Asked Questions
Which has a higher dividend yield, GPC or ROST?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Ross Stores, Inc. (ROST) at 0.82%.
Which is safer for dividend income, GPC or ROST?
Genuine Parts Co's dividend safety is rated "Moderate" while Ross Stores, 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 25% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in GPC vs ROST generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in ROST generates about $82/year.
Is GPC or ROST a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat with 39 consecutive years of increases. Ross Stores, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, GPC or ROST?
Ross Stores, Inc. has a lower payout ratio of 25% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs ROST: which is better for retirement income?
It depends on your priorities. GPC for current income, ROST for safety. Many retirement investors hold both for diversification.
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