NUE vs SHW: Dividend Yield, Growth & Safety Comparison
Nucor Corp (NUE) and Sherwin Williams Co (SHW) are both in the Materials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — NUE at 1.15% and SHW at 0.87%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus NUE's 6.5%. Both stocks carry a "Safe" dividend safety rating. NUE is a Dividend Contender while SHW is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | NUE | SHW |
|---|
| Dividend Yield | 1.15% | 0.87% |
| Annual Dividend | $2.21 | $3.16 |
| 5-Year CAGR | 6.5% | 9.5% |
| Payout Ratio | 29% | 31% |
| Consecutive Years | 16 | 40 |
| Price | $182.61 | $368.50 |
Yield Comparison
Nucor Corp (NUE) currently yields 1.15%, which is modest for the broader market. That's 0.28% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, NUE pays $2.21/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 NUE's 6.5%. NUE: Dividend growth is slowing — the 3-year CAGR of 3.3% trails the 5-year rate of 6.5% and the 10-year rate of 4.4%. 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
NUE's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. 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. Both have similar payout ratios — NUE at 29% and SHW at 31%.
Income Comparison
A $10,000 investment in NUE generates approximately $115/year in dividend income, compared to $87/year from SHW — a difference of $28/year. At $100,000, that gap widens to $280/year.
Verdict
- Best for income: NUE
- Best for growth: SHW
Frequently Asked Questions
Which has a higher dividend yield, NUE or SHW?
Nucor Corp (NUE) has a higher dividend yield of 1.15% compared to Sherwin Williams Co (SHW) at 0.87%.
Is NUE 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 Nucor Corp's 6.5%.
Which is safer for dividend income, NUE or SHW?
Nucor Corp's dividend safety is rated "Safe" while Sherwin Williams Co is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. 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 NUE vs SHW generate?
A $10,000 investment in NUE generates approximately $115/year in dividends, while the same amount in SHW generates about $87/year.
Is NUE or SHW a Dividend Aristocrat?
Nucor Corp is a Dividend Contender (16 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, NUE or SHW?
Nucor Corp has a lower payout ratio of 29% compared to Sherwin Williams Co's 31%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
NUE vs SHW: which is better for retirement income?
It depends on your priorities. NUE for current income, SHW for dividend growth. Many retirement investors hold both for diversification.
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