HRL vs PG: Dividend Yield, Growth & Safety Comparison
Hormel Foods Corp /De/ (HRL) and PROCTER & GAMBLE Co (PG) are both in the Consumer Staples sector, making them natural rivals for dividend investors. HRL offers a significantly higher 4.77% yield compared to PG's 2.63%, a gap of 2.15%. Both stocks show similar dividend growth rates, each around 12.1% over the past five years. HRL holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | HRL | PG |
|---|
| Dividend Yield | 4.77% | 2.63% |
| Annual Dividend | $1.16 | $4.18 |
| 5-Year CAGR | 12.1% | 12.5% |
| Payout Ratio | 1% | 62% |
| Consecutive Years | 0 | 0 |
| Price | $23.74 | $160.56 |
Yield Comparison
Hormel Foods Corp /De/ (HRL) currently yields 4.77%, which is attractive for the broader market. That's 2.15% more than PROCTER & GAMBLE Co (PG), which yields 2.63%. In dollar terms, HRL pays $1.16/share annually versus PG's $4.18/share.
Dividend Growth
Over the past five years, PG has grown its dividend at a 12.5% CAGR compared to HRL's 12.1%. HRL: Dividend growth is accelerating — the 3-year CAGR of 18.6% exceeds the 5-year rate of 12.1% and the 10-year rate of 11.5%. PG: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 12.5% and the 10-year rate of 8.5%.
Dividend Safety
HRL's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. PG's dividend safety is rated "Moderate." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. HRL's payout ratio of 1% is more conservative than PG's 62%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in HRL generates approximately $477/year in dividend income, compared to $263/year from PG — a difference of $214/year. At $100,000, that gap widens to $2140/year.
Verdict
- Best for income: HRL
- Best for safety: HRL
Frequently Asked Questions
Which has a higher dividend yield, HRL or PG?
Hormel Foods Corp /De/ (HRL) has a higher dividend yield of 4.77% compared to PROCTER & GAMBLE Co (PG) at 2.63%.
Is HRL or PG a better dividend growth stock?
PROCTER & GAMBLE Co has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Hormel Foods Corp /De/'s 12.1%.
Which is safer for dividend income, HRL or PG?
Hormel Foods Corp /De/'s dividend safety is rated "Safe" while PROCTER & GAMBLE Co is rated "Moderate." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
How much income does $10,000 in HRL vs PG generate?
A $10,000 investment in HRL generates approximately $477/year in dividends, while the same amount in PG generates about $263/year.
Which has a lower payout ratio, HRL or PG?
Hormel Foods Corp /De/ has a lower payout ratio of 1% compared to PROCTER & GAMBLE Co's 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HRL vs PG: which is better for retirement income?
It depends on your priorities. HRL for current income, HRL for safety. Many retirement investors hold both for diversification.
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