GWW vs JCI: Dividend Yield, Growth & Safety Comparison
W.W. Grainger, Inc. (GWW) and Johnson Controls International plc (JCI) are both in the Industrials sector, making them natural rivals for dividend investors. JCI edges ahead on yield at 1.11% versus GWW's 0.74%. For dividend growth, GWW leads with a 5-year CAGR of 16.1% versus JCI's -10.4%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | GWW | JCI |
|---|
| Dividend Yield | 0.74% | 1.11% |
| Annual Dividend | $8.83 | $1.54 |
| 5-Year CAGR | 16.1% | -10.4% |
| Payout Ratio | 25% | 52% |
| Consecutive Years | 0 | 0 |
| Price | $1139.68 | $138.79 |
Yield Comparison
Johnson Controls International plc (JCI) currently yields 1.11%, which is modest for the broader market. That's 0.37% more than W.W. Grainger, Inc. (GWW), which yields 0.74%. In dollar terms, JCI pays $1.54/share annually versus GWW's $8.83/share.
Dividend Growth
Over the past five years, GWW has grown its dividend at a 16.1% CAGR compared to JCI's -10.4%. GWW: Dividend growth is accelerating — the 3-year CAGR of 25.8% exceeds the 5-year rate of 16.1% and the 10-year rate of 10.3%. JCI: Dividend growth is slowing — the 3-year CAGR of -29.0% trails the 5-year rate of -10.4% and the 10-year rate of -20.2%.
Dividend Safety
GWW's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x. JCI's dividend safety is rated "Safe." The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x. GWW's payout ratio of 25% is more conservative than JCI's 52%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in JCI generates approximately $111/year in dividend income, compared to $74/year from GWW — a difference of $37/year. At $100,000, that gap widens to $370/year.
Verdict
- Best for income: JCI
- Best for growth: GWW
- Best for safety: GWW
Frequently Asked Questions
Which has a higher dividend yield, GWW or JCI?
Johnson Controls International plc (JCI) has a higher dividend yield of 1.11% compared to W.W. Grainger, Inc. (GWW) at 0.74%.
Is GWW or JCI a better dividend growth stock?
W.W. Grainger, Inc. has the stronger dividend growth with a 5-year CAGR of 16.1%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, GWW or JCI?
W.W. Grainger, Inc.'s dividend safety is rated "Safe" while Johnson Controls International plc is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x. The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
How much income does $10,000 in GWW vs JCI generate?
A $10,000 investment in GWW generates approximately $74/year in dividends, while the same amount in JCI generates about $111/year.
Which has a lower payout ratio, GWW or JCI?
W.W. Grainger, Inc. has a lower payout ratio of 25% compared to Johnson Controls International plc's 52%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GWW vs JCI: which is better for retirement income?
It depends on your priorities. JCI for current income, GWW for dividend growth, GWW for safety. Many retirement investors hold both for diversification.
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