GWW vs NDSN: Dividend Comparison
Dividend data as of
W.W. Grainger, Inc. (GWW) and Nordson Corp (NDSN) are both in the Industrials sector, making them natural rivals for dividend investors. NDSN edges ahead on yield at 1.07% versus GWW's 0.74%. For dividend growth, NDSN leads with a 5-year CAGR of 21.9% versus GWW's 16.1%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
NDSN yields 0.33% more than GWW. In dollar terms, GWW pays $8.83/share vs NDSN's $3.16/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%.
NDSN: Dividend growth has been steady, with a 3-year CAGR of 22.3% and a 5-year CAGR of 21.9% (10-year: 16.3%).
Dividend Safety
GWW: The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x.
NDSN: The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in GWW vs NDSN 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 $298.62 per share, $10,000 buys about 33.5 shares of Nordson Corp (NDSN). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $106 per year — about $9 a month.
NDSN is the larger income stream from day one: $28 per year more on the same $10,000 invested.
What could $10,000 of GWW or NDSN 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.
Nordson Corp (NDSN) has raised its dividend about 21.9% a year over the past five years. If that pace held, the $107 per year that $10,000 generates today at the current 1.07% yield would reach $777 per year by 2036 — a 7.8% yield on the original cost.
On those trailing rates, NDSN pays more in 2036: $777 versus $331 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 NDSN's higher yield?
It doesn't, on the trailing numbers. Nordson Corp (NDSN) yields more today (1.07% vs 0.74%) and has also grown its dividend at least as fast (21.9% vs 16.1% a year over five years). Unless GWW accelerates its raises or NDSN stumbles, GWW never closes the income gap — NDSN wins on both current income and growth.
Can GWW and NDSN 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).
Nordson Corp (NDSN) earns $8.50 per share against $3.16 paid out in dividends — 2.7x coverage (a 37% 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 NDSN if earnings weaken.
Which fits an early-retirement income portfolio better, GWW or NDSN?
For income you need right now, Nordson Corp (NDSN) leads: $100,000 invested today pays about $89 a month at the current 1.07% yield, versus $62 a month from W.W. Grainger, Inc. (GWW) at 0.74%.
NDSN also leads on dividend growth (21.9% vs 16.1% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: NDSN has raised its dividend 1 consecutive year.
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 $864/yr in NDSN 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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