GPC vs SHW: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) from Consumer Discretionary and Sherwin Williams Co (SHW) from Materials offer different dividend profiles for income-focused portfolios. GPC offers a significantly higher 2.79% yield compared to SHW's 0.87%, a gap of 1.92%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus GPC's 6.0%. SHW holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | GPC | SHW |
|---|
| Dividend Yield | 2.79% | 0.87% |
| Annual Dividend | $4.09 | $3.16 |
| 5-Year CAGR | 6.0% | 9.5% |
| Payout Ratio | 70% | 31% |
| Consecutive Years | 39 | 40 |
| Price | $147.18 | $368.50 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 1.92% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, GPC pays $4.09/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% 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%. SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
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. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. SHW's payout ratio of 31% 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 $87/year from SHW — a difference of $192/year. At $100,000, that gap widens to $1920/year.
Verdict
- Best for income: GPC
- Best for growth: SHW
- Best for safety: SHW
Frequently Asked Questions
Which has a higher dividend yield, GPC or SHW?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Sherwin Williams Co (SHW) at 0.87%.
Is GPC or SHW a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, GPC or SHW?
Genuine Parts Co's dividend safety is rated "Moderate" while Sherwin Williams Co 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 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in GPC vs SHW generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in SHW generates about $87/year.
Is GPC or SHW a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat (39 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, GPC or SHW?
Sherwin Williams Co has a lower payout ratio of 31% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs SHW: which is better for retirement income?
It depends on your priorities. GPC for current income, SHW for dividend growth, SHW for safety. Many retirement investors hold both for diversification.
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