GWW vs PNR: Dividend Yield, Growth & Safety Comparison
W.W. Grainger, Inc. (GWW) and PENTAIR plc (PNR) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — GWW at 0.74% and PNR at 1.01%. For dividend growth, GWW leads with a 5-year CAGR of 16.1% versus PNR's 13.6%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | GWW | PNR |
|---|
| Dividend Yield | 0.74% | 1.01% |
| Annual Dividend | $8.83 | $1.00 |
| 5-Year CAGR | 16.1% | 13.6% |
| Payout Ratio | 25% | 25% |
| Consecutive Years | 0 | 0 |
| Price | $1139.68 | $101.30 |
Yield Comparison
PENTAIR plc (PNR) currently yields 1.01%, which is modest for the broader market. That's 0.27% more than W.W. Grainger, Inc. (GWW), which yields 0.74%. In dollar terms, PNR pays $1.00/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 PNR's 13.6%. 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%. PNR: Dividend growth is accelerating — the 3-year CAGR of 23.1% exceeds the 5-year rate of 13.6% and the 10-year rate of 4.4%.
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. PNR'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 3.9x. Both have similar payout ratios — GWW at 25% and PNR at 25%.
Income Comparison
A $10,000 investment in PNR generates approximately $101/year in dividend income, compared to $74/year from GWW — a difference of $27/year. At $100,000, that gap widens to $270/year.
Verdict
- Best for income: PNR
- Best for growth: GWW
Frequently Asked Questions
Which has a higher dividend yield, GWW or PNR?
PENTAIR plc (PNR) has a higher dividend yield of 1.01% compared to W.W. Grainger, Inc. (GWW) at 0.74%.
Is GWW or PNR a better dividend growth stock?
W.W. Grainger, Inc. has the stronger dividend growth with a 5-year CAGR of 16.1%, compared to PENTAIR plc's 13.6%.
Which is safer for dividend income, GWW or PNR?
W.W. Grainger, Inc.'s dividend safety is rated "Safe" while PENTAIR 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 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x.
How much income does $10,000 in GWW vs PNR generate?
A $10,000 investment in GWW generates approximately $74/year in dividends, while the same amount in PNR generates about $101/year.
Which has a lower payout ratio, GWW or PNR?
W.W. Grainger, Inc. has a lower payout ratio of 25% compared to PENTAIR plc's 25%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GWW vs PNR: which is better for retirement income?
It depends on your priorities. PNR for current income, GWW for dividend growth. Many retirement investors hold both for diversification.
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