GWW vs SWK: Dividend Comparison
Dividend data as of
W.W. Grainger, Inc. (GWW) and Stanley Black & Decker, Inc. (SWK) are both in the Industrials sector, making them natural rivals for dividend investors. SWK offers a significantly higher 3.60% yield compared to GWW's 0.74%, a gap of 2.85%. For dividend growth, GWW leads with a 5-year CAGR of 16.1% versus SWK's 2.6%. Both stocks carry a "Safe" dividend safety rating. SWK is a Dividend Aristocrat with 28 years of consecutive increases.
Verdict
Yield Analysis
SWK yields 2.85% more than GWW. In dollar terms, GWW pays $8.83/share vs SWK's $3.30/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%.
SWK: Dividend growth is slowing — the 3-year CAGR of 1.2% trails the 5-year rate of 2.6% and the 10-year rate of 4.3%.
Dividend Safety
GWW: The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.0x.
SWK: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in GWW vs SWK 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 $91.08 per share, $10,000 buys about 109.8 shares of Stanley Black & Decker, Inc. (SWK). Each share pays $3.30 per year in dividends, so the position starts out generating roughly $362 per year — about $30 a month.
SWK is the larger income stream from day one: $285 per year more on the same $10,000 invested.
What could $10,000 of GWW or SWK 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.
Stanley Black & Decker, Inc. (SWK) has raised its dividend about 2.6% a year over the past five years. If that pace held, the $360 per year that $10,000 generates today at the current 3.60% yield would reach $464 per year by 2036 — a 4.6% yield on the original cost.
On those trailing rates, SWK pays more in 2036: $464 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 SWK's higher yield?
W.W. Grainger, Inc. (GWW) yields less today (0.74% vs 3.60%) but has grown its dividend faster — 16.1% vs 2.6% 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 SWK around 2039 (roughly 13 years from now), paying about $518 per year at the crossover. Before that point, SWK pays more each year; after it, the gap compounds in GWW's favor.
Can GWW and SWK 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).
Stanley Black & Decker, Inc. (SWK) earns $2.65 per share against $3.30 paid out in dividends — 0.8x coverage (a 1% 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 SWK if earnings weaken.
Which fits an early-retirement income portfolio better, GWW or SWK?
For income you need right now, Stanley Black & Decker, Inc. (SWK) leads: $100,000 invested today pays about $300 a month at the current 3.60% 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 2.6% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: SWK has raised its dividend 28 consecutive years.
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 $661/yr in SWK 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.
Track GWW and SWK in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Choosing a tracker? See the best dividend trackers compared.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.