GPC vs WMT: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) from Consumer Discretionary and Walmart Inc. (WMT) from Consumer Staples offer different dividend profiles for income-focused portfolios. GPC offers a significantly higher 2.79% yield compared to WMT's 0.72%, a gap of 2.07%. Both stocks show similar dividend growth rates, each around 6.0% over the past five years. WMT holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | GPC | WMT |
|---|
| Dividend Yield | 2.79% | 0.72% |
| Annual Dividend | $4.09 | $0.91 |
| 5-Year CAGR | 6.0% | 6.4% |
| Payout Ratio | 70% | 32% |
| Consecutive Years | 39 | 43 |
| Price | $147.18 | $133.79 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 2.07% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, GPC pays $4.09/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, WMT has grown its dividend at a 6.4% 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%. WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. WMT's payout ratio of 32% 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 $72/year from WMT — a difference of $207/year. At $100,000, that gap widens to $2070/year.
Verdict
- Best for income: GPC
- Best for safety: WMT
Frequently Asked Questions
Which has a higher dividend yield, GPC or WMT?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Walmart Inc. (WMT) at 0.72%.
Is GPC or WMT a better dividend growth stock?
Walmart Inc. has the stronger dividend growth with a 5-year CAGR of 6.4%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, GPC or WMT?
Genuine Parts Co's dividend safety is rated "Moderate" while Walmart 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 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in GPC vs WMT generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in WMT generates about $72/year.
Is GPC or WMT a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat (39 years) and Walmart Inc. is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, GPC or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs WMT: which is better for retirement income?
It depends on your priorities. GPC for current income, WMT for safety. Many retirement investors hold both for diversification.
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