NDSN vs UNP: Dividend Yield, Growth & Safety Comparison
Nordson Corp (NDSN) and Union Pacific Corp (UNP) are both in the Industrials sector, making them natural rivals for dividend investors. UNP offers a significantly higher 2.08% yield compared to NDSN's 1.07%, a gap of 1.01%. For dividend growth, NDSN leads with a 5-year CAGR of 21.9% versus UNP's 6.1%. Both stocks carry a "Safe" dividend safety rating. UNP is a Dividend Contender with 19 years of consecutive increases.
Key Metrics Comparison
| Metric | NDSN | UNP |
|---|
| Dividend Yield | 1.07% | 2.08% |
| Annual Dividend | $3.16 | $5.44 |
| 5-Year CAGR | 21.9% | 6.1% |
| Payout Ratio | 37% | 45% |
| Consecutive Years | 1 | 19 |
| Price | $298.62 | $260.92 |
Yield Comparison
Union Pacific Corp (UNP) currently yields 2.08%, which is solid for the broader market. That's 1.01% more than Nordson Corp (NDSN), which yields 1.07%. In dollar terms, UNP pays $5.44/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 UNP's 6.1%. 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%). UNP: Dividend growth is slowing — the 3-year CAGR of 2.3% trails the 5-year rate of 6.1% and the 10-year rate of 10.3%.
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. UNP's dividend safety is rated "Safe." The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x. NDSN's payout ratio of 37% is more conservative than UNP's 45%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in UNP generates approximately $208/year in dividend income, compared to $107/year from NDSN — a difference of $101/year. At $100,000, that gap widens to $1010/year.
Verdict
- Best for income: UNP
- Best for growth: NDSN
- Best for safety: NDSN
Frequently Asked Questions
Which has a higher dividend yield, NDSN or UNP?
Union Pacific Corp (UNP) has a higher dividend yield of 2.08% compared to Nordson Corp (NDSN) at 1.07%.
Is NDSN or UNP a better dividend growth stock?
Nordson Corp has the stronger dividend growth with a 5-year CAGR of 21.9%, compared to Union Pacific Corp's 6.1%.
Which is safer for dividend income, NDSN or UNP?
Nordson Corp's dividend safety is rated "Safe" while Union Pacific Corp 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 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x.
How much income does $10,000 in NDSN vs UNP generate?
A $10,000 investment in NDSN generates approximately $107/year in dividends, while the same amount in UNP generates about $208/year.
Is NDSN or UNP a Dividend Aristocrat?
Union Pacific Corp is a Dividend Contender with 19 consecutive years of increases. Nordson Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, NDSN or UNP?
Nordson Corp has a lower payout ratio of 37% compared to Union Pacific Corp's 45%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
NDSN vs UNP: which is better for retirement income?
It depends on your priorities. UNP for current income, NDSN for dividend growth, NDSN for safety. Many retirement investors hold both for diversification.
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