NDSN vs SWK: Dividend Yield, Growth & Safety Comparison
Nordson Corp (NDSN) 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 NDSN's 1.07%, a gap of 2.53%. For dividend growth, NDSN leads with a 5-year CAGR of 21.9% versus SWK's 2.6%. Both stocks carry a "Safe" dividend safety rating. SWK is a Dividend Aristocrat with 28 years of consecutive increases.
Key Metrics Comparison
| Metric | NDSN | SWK |
|---|
| Dividend Yield | 1.07% | 3.60% |
| Annual Dividend | $3.16 | $3.30 |
| 5-Year CAGR | 21.9% | 2.6% |
| Payout Ratio | 37% | 1% |
| Consecutive Years | 1 | 28 |
| Price | $298.62 | $91.08 |
Yield Comparison
Stanley Black & Decker, Inc. (SWK) currently yields 3.60%, which is solid for the broader market. That's 2.53% more than Nordson Corp (NDSN), which yields 1.07%. In dollar terms, SWK pays $3.30/share annually versus NDSN's $3.16/share.
Dividend Growth
Over the past five years, NDSN has grown its dividend at a 21.9% CAGR compared to SWK's 2.6%. NDSN: Dividend growth has been steady, with a 3-year CAGR of 22.3% and a 5-year CAGR of 21.9% (10-year: 16.3%). 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
NDSN's dividend safety is rated "Safe." The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. SWK'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. SWK's payout ratio of 1% is more conservative than NDSN's 37%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SWK generates approximately $360/year in dividend income, compared to $107/year from NDSN — a difference of $253/year. At $100,000, that gap widens to $2530/year.
Verdict
- Best for income: SWK
- Best for growth: NDSN
- Best for safety: SWK
Frequently Asked Questions
Which has a higher dividend yield, NDSN or SWK?
Stanley Black & Decker, Inc. (SWK) has a higher dividend yield of 3.60% compared to Nordson Corp (NDSN) at 1.07%.
Is NDSN or SWK a better dividend growth stock?
Nordson Corp has the stronger dividend growth with a 5-year CAGR of 21.9%, compared to Stanley Black & Decker, Inc.'s 2.6%.
Which is safer for dividend income, NDSN or SWK?
Nordson Corp's dividend safety is rated "Safe" while Stanley Black & Decker, Inc. is rated "Safe." The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in NDSN vs SWK generate?
A $10,000 investment in NDSN generates approximately $107/year in dividends, while the same amount in SWK generates about $360/year.
Is NDSN or SWK a Dividend Aristocrat?
Stanley Black & Decker, Inc. is a Dividend Aristocrat with 28 consecutive years of increases. Nordson Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, NDSN or SWK?
Stanley Black & Decker, Inc. has a lower payout ratio of 1% compared to Nordson Corp's 37%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
NDSN vs SWK: which is better for retirement income?
It depends on your priorities. SWK for current income, NDSN for dividend growth, SWK for safety. Many retirement investors hold both for diversification.
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