HRL vs WMT: Dividend Yield, Growth & Safety Comparison
Hormel Foods Corp /De/ (HRL) and Walmart Inc. (WMT) are both in the Consumer Staples sector, making them natural rivals for dividend investors. HRL offers a significantly higher 4.77% yield compared to WMT's 0.72%, a gap of 4.05%. For dividend growth, HRL leads with a 5-year CAGR of 12.1% versus WMT's 6.4%. Both stocks carry a "Safe" dividend safety rating. WMT is a Dividend Aristocrat with 43 years of consecutive increases.
Key Metrics Comparison
| Metric | HRL | WMT |
|---|
| Dividend Yield | 4.77% | 0.72% |
| Annual Dividend | $1.16 | $0.91 |
| 5-Year CAGR | 12.1% | 6.4% |
| Payout Ratio | 1% | 32% |
| Consecutive Years | 0 | 43 |
| Price | $23.74 | $133.79 |
Yield Comparison
Hormel Foods Corp /De/ (HRL) currently yields 4.77%, which is attractive for the broader market. That's 4.05% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, HRL pays $1.16/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, HRL has grown its dividend at a 12.1% CAGR compared to WMT's 6.4%. 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%. WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. HRL's payout ratio of 1% is more conservative than WMT's 32%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in HRL generates approximately $477/year in dividend income, compared to $72/year from WMT — a difference of $405/year. At $100,000, that gap widens to $4050/year.
Verdict
- Best for income: HRL
- Best for growth: HRL
- Best for safety: HRL
Frequently Asked Questions
Which has a higher dividend yield, HRL or WMT?
Hormel Foods Corp /De/ (HRL) has a higher dividend yield of 4.77% compared to Walmart Inc. (WMT) at 0.72%.
Is HRL or WMT a better dividend growth stock?
Hormel Foods Corp /De/ has the stronger dividend growth with a 5-year CAGR of 12.1%, compared to Walmart Inc.'s 6.4%.
Which is safer for dividend income, HRL or WMT?
Hormel Foods Corp /De/'s dividend safety is rated "Safe" while Walmart Inc. is rated "Safe." 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 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in HRL vs WMT generate?
A $10,000 investment in HRL generates approximately $477/year in dividends, while the same amount in WMT generates about $72/year.
Is HRL or WMT a Dividend Aristocrat?
Walmart Inc. is a Dividend Aristocrat with 43 consecutive years of increases. Hormel Foods Corp /De/ does not currently qualify for aristocrat status.
Which has a lower payout ratio, HRL or WMT?
Hormel Foods Corp /De/ has a lower payout ratio of 1% compared to Walmart Inc.'s 32%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HRL vs WMT: which is better for retirement income?
It depends on your priorities. HRL for current income, HRL for dividend growth, HRL for safety. Many retirement investors hold both for diversification.
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