PG vs WMT: Dividend Comparison
Dividend data as of
PROCTER & GAMBLE Co (PG) and Walmart Inc. (WMT) are both in the Consumer Staples sector, making them natural rivals for dividend investors. PG offers a significantly higher 2.63% yield compared to WMT's 0.72%, a gap of 1.91%. For dividend growth, PG leads with a 5-year CAGR of 12.5% versus WMT's 6.4%. WMT holds the edge in dividend safety with a "Safe" rating. WMT is a Dividend Aristocrat with 43 years of consecutive increases.
Verdict
Yield Analysis
PG yields 1.91% more than WMT. In dollar terms, PG pays $4.18/share vs WMT's $0.91/share annually.
Dividend Growth
PG: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 12.5% and the 10-year rate of 8.5%.
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
PG: The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
WMT: The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in PG vs WMT today?
At $160.56 per share, $10,000 buys about 62.3 shares of PROCTER & GAMBLE Co (PG). Each share pays $4.18 per year in dividends, so the position starts out generating roughly $260 per year — about $22 a month.
At $133.79 per share, $10,000 buys about 74.7 shares of Walmart Inc. (WMT). Each share pays $0.91 per year in dividends, so the position starts out generating roughly $68 per year — about $6 a month.
PG is the larger income stream from day one: $192 per year more on the same $10,000 invested.
What could $10,000 of PG or WMT income look like in 10 years?
PROCTER & GAMBLE Co (PG) has raised its dividend about 12.5% a year over the past five years. If that pace held, the $263 per year that $10,000 generates today at the current 2.63% yield would reach $851 per year by 2036 — a 8.5% yield on the original cost.
Walmart Inc. (WMT) has raised its dividend about 6.4% a year over the past five years. If that pace held, the $72 per year that $10,000 generates today at the current 0.72% yield would reach $134 per year by 2036 — a 1.3% yield on the original cost.
On those trailing rates, PG pays more in 2036: $851 versus $134 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would WMT's dividend growth overtake PG's higher yield?
It doesn't, on the trailing numbers. PROCTER & GAMBLE Co (PG) yields more today (2.63% vs 0.72%) and has also grown its dividend at least as fast (12.5% vs 6.4% a year over five years). Unless WMT accelerates its raises or PG stumbles, WMT never closes the income gap — PG wins on both current income and growth.
Can PG and WMT afford their dividends?
PROCTER & GAMBLE Co (PG) earns $6.75 per share against $4.18 paid out in dividends — 1.6x coverage (a 62% payout ratio).
Walmart Inc. (WMT) earns $2.86 per share against $0.91 paid out in dividends — 3.1x coverage (a 32% payout ratio).
WMT's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for PG if earnings weaken.
Which fits an early-retirement income portfolio better, PG or WMT?
For income you need right now, PROCTER & GAMBLE Co (PG) leads: $100,000 invested today pays about $219 a month at the current 2.63% yield, versus $60 a month from Walmart Inc. (WMT) at 0.72%.
PG also leads on dividend growth (12.5% vs 6.4% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: WMT has raised its dividend 43 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,103/yr in PG vs $144/yr in WMT by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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