GWW vs NDSN: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | GWW | NDSN |
|---|
| Dividend Yield | 0.74% | 1.07% |
| Annual Dividend | $8.83 | $3.16 |
| 5-Year CAGR | 16.1% | 21.9% |
| Payout Ratio | 25% | 37% |
| Consecutive Years | 0 | 1 |
| Price | $1139.68 | $298.62 |
Yield Comparison
Nordson Corp (NDSN) currently yields 1.07%, which is modest for the broader market. That's 0.33% more than W.W. Grainger, Inc. (GWW), which yields 0.74%. In dollar terms, NDSN pays $3.16/share annually versus GWW's $8.83/share.
Dividend Growth
Over the past five years, NDSN has grown its dividend at a 21.9% CAGR compared to GWW's 16.1%. 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'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. NDSN's dividend safety is rated "Safe." The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. GWW's payout ratio of 25% is more conservative than NDSN's 37%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in NDSN generates approximately $107/year in dividend income, compared to $74/year from GWW — a difference of $33/year. At $100,000, that gap widens to $330/year.
Verdict
- Best for income: NDSN
- Best for growth: NDSN
- Best for safety: GWW
Frequently Asked Questions
Which has a higher dividend yield, GWW or NDSN?
Nordson Corp (NDSN) has a higher dividend yield of 1.07% compared to W.W. Grainger, Inc. (GWW) at 0.74%.
Is GWW or NDSN a better dividend growth stock?
Nordson Corp has the stronger dividend growth with a 5-year CAGR of 21.9%, compared to W.W. Grainger, Inc.'s 16.1%.
Which is safer for dividend income, GWW or NDSN?
W.W. Grainger, Inc.'s dividend safety is rated "Safe" while Nordson Corp 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 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
How much income does $10,000 in GWW vs NDSN generate?
A $10,000 investment in GWW generates approximately $74/year in dividends, while the same amount in NDSN generates about $107/year.
Which has a lower payout ratio, GWW or NDSN?
W.W. Grainger, Inc. has a lower payout ratio of 25% compared to Nordson Corp's 37%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GWW vs NDSN: which is better for retirement income?
It depends on your priorities. NDSN for current income, NDSN for dividend growth, GWW for safety. Many retirement investors hold both for diversification.
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