GPC vs XOM: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) from Consumer Discretionary and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — GPC at 2.79% and XOM at 2.64%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus GPC's 6.0%. XOM holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | GPC | XOM |
|---|
| Dividend Yield | 2.79% | 2.64% |
| Annual Dividend | $4.09 | $4.00 |
| 5-Year CAGR | 6.0% | 11.2% |
| Payout Ratio | 70% | 60% |
| Consecutive Years | 39 | 42 |
| Price | $147.18 | $148.59 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.15% more than Exxon Mobil Corp (XOM), which yields 2.64%. In dollar terms, GPC pays $4.09/share annually versus XOM's $4.00/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% 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%. XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. XOM's payout ratio of 60% 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 $264/year from XOM — a difference of $15/year. At $100,000, that gap widens to $150/year.
Verdict
- Best for income: GPC
- Best for growth: XOM
- Best for safety: XOM
Frequently Asked Questions
Which has a higher dividend yield, GPC or XOM?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Exxon Mobil Corp (XOM) at 2.64%.
Is GPC or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, GPC or XOM?
Genuine Parts Co's dividend safety is rated "Moderate" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in GPC vs XOM generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in XOM generates about $264/year.
Is GPC or XOM a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat (39 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, GPC or XOM?
Exxon Mobil Corp has a lower payout ratio of 60% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs XOM: which is better for retirement income?
It depends on your priorities. GPC for current income, XOM for dividend growth, XOM for safety. Many retirement investors hold both for diversification.
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