JNJ vs SHW: Dividend Yield, Growth & Safety Comparison
Johnson & Johnson (JNJ) from Health Care and Sherwin Williams Co (SHW) from Materials offer different dividend profiles for income-focused portfolios. JNJ offers a significantly higher 2.16% yield compared to SHW's 0.87%, a gap of 1.29%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus JNJ's 5.2%. Both stocks carry a "Safe" dividend safety rating. JNJ is a Dividend King while SHW is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | JNJ | SHW |
|---|
| Dividend Yield | 2.16% | 0.87% |
| Annual Dividend | $5.14 | $3.16 |
| 5-Year CAGR | 5.2% | 9.5% |
| Payout Ratio | 47% | 31% |
| Consecutive Years | 63 | 40 |
| Price | $243.53 | $368.50 |
Yield Comparison
Johnson & Johnson (JNJ) currently yields 2.16%, which is solid for the broader market. That's 1.29% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, JNJ pays $5.14/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% CAGR compared to JNJ's 5.2%. JNJ: Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.2% and the 10-year rate of 5.6%. SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
Dividend Safety
JNJ's dividend safety is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. SHW's payout ratio of 31% is more conservative than JNJ's 47%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in JNJ generates approximately $216/year in dividend income, compared to $87/year from SHW — a difference of $129/year. At $100,000, that gap widens to $1290/year.
Verdict
- Best for income: JNJ
- Best for growth: SHW
- Best for safety: SHW
Frequently Asked Questions
Which has a higher dividend yield, JNJ or SHW?
Johnson & Johnson (JNJ) has a higher dividend yield of 2.16% compared to Sherwin Williams Co (SHW) at 0.87%.
Is JNJ or SHW a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, JNJ or SHW?
Johnson & Johnson's dividend safety is rated "Safe" while Sherwin Williams Co is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in JNJ vs SHW generate?
A $10,000 investment in JNJ generates approximately $216/year in dividends, while the same amount in SHW generates about $87/year.
Is JNJ or SHW a Dividend Aristocrat?
Johnson & Johnson is a Dividend King (63 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, JNJ or SHW?
Sherwin Williams Co has a lower payout ratio of 31% compared to Johnson & Johnson's 47%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JNJ vs SHW: which is better for retirement income?
It depends on your priorities. JNJ for current income, SHW for dividend growth, SHW for safety. Many retirement investors hold both for diversification.
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