GWW vs JCI: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
JCI yields 0.37% more than GWW. In dollar terms, GWW pays $8.83/share vs JCI's $1.54/share annually.
Dividend Growth
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: The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x.
JCI: The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in GWW vs JCI today?
At $1139.68 per share, $10,000 buys about 8.8 shares of W.W. Grainger, Inc. (GWW). Each share pays $8.83 per year in dividends, so the position starts out generating roughly $77 per year — about $6 a month.
At $138.79 per share, $10,000 buys about 72.1 shares of Johnson Controls International plc (JCI). Each share pays $1.54 per year in dividends, so the position starts out generating roughly $111 per year — about $9 a month.
JCI is the larger income stream from day one: $33 per year more on the same $10,000 invested.
What could $10,000 of GWW or JCI income look like in 10 years?
W.W. Grainger, Inc. (GWW) has raised its dividend about 16.1% a year over the past five years. If that pace held, the $74 per year that $10,000 generates today at the current 0.74% yield would reach $331 per year by 2036 — a 3.3% yield on the original cost.
Johnson Controls International plc (JCI)'s dividend has shrunk about 10.4% a year over the past five years. If that trend continued, today's $111 per year on $10,000 (at the current 1.11% yield) would fall to $37 per year by 2036.
On those trailing rates, GWW pays more in 2036: $331 versus $37 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would GWW's dividend growth overtake JCI's higher yield?
W.W. Grainger, Inc. (GWW) yields less today (0.74% vs 1.11%) but has grown its dividend faster — 16.1% vs -10.4% a year over the past five years. If both trends continued, a $10,000 position in GWW would start out-earning the same position in JCI around 2028 (roughly 2 years from now), paying about $100 per year at the crossover. Before that point, JCI pays more each year; after it, the gap compounds in GWW's favor.
Can GWW and JCI afford their dividends?
W.W. Grainger, Inc. (GWW) earns $35.35 per share against $8.83 paid out in dividends — 4.0x coverage (a 25% payout ratio).
Johnson Controls International plc (JCI) earns $2.97 per share against $1.54 paid out in dividends — 1.9x coverage (a 52% payout ratio).
GWW's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for JCI if earnings weaken.
Which fits an early-retirement income portfolio better, GWW or JCI?
For income you need right now, Johnson Controls International plc (JCI) leads: $100,000 invested today pays about $92 a month at the current 1.11% yield, versus $62 a month from W.W. Grainger, Inc. (GWW) at 0.74%.
With a decade or more before the income is needed, GWW's faster dividend growth (16.1% vs -10.4% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $356/yr in GWW vs $41/yr in JCI by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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