PG vs WMT: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | PG | WMT |
|---|
| Dividend Yield | 2.63% | 0.72% |
| Annual Dividend | $4.18 | $0.91 |
| 5-Year CAGR | 12.5% | 6.4% |
| Payout Ratio | 62% | 32% |
| Consecutive Years | 0 | 43 |
| Price | $160.56 | $133.79 |
Yield Comparison
PROCTER & GAMBLE Co (PG) currently yields 2.63%, which is solid for the broader market. That's 1.91% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, PG pays $4.18/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, PG has grown its dividend at a 12.5% CAGR compared to WMT's 6.4%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. WMT's payout ratio of 32% is more conservative than PG's 62%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PG generates approximately $263/year in dividend income, compared to $72/year from WMT — a difference of $191/year. At $100,000, that gap widens to $1910/year.
Verdict
- Best for income: PG
- Best for growth: PG
- Best for safety: WMT
Frequently Asked Questions
Which has a higher dividend yield, PG or WMT?
PROCTER & GAMBLE Co (PG) has a higher dividend yield of 2.63% compared to Walmart Inc. (WMT) at 0.72%.
Is PG or WMT a better dividend growth stock?
PROCTER & GAMBLE Co has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Walmart Inc.'s 6.4%.
Which is safer for dividend income, PG or WMT?
PROCTER & GAMBLE Co's dividend safety is rated "Moderate" while Walmart Inc. is rated "Safe." 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. The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in PG vs WMT generate?
A $10,000 investment in PG generates approximately $263/year in dividends, while the same amount in WMT generates about $72/year.
Is PG or WMT a Dividend Aristocrat?
Walmart Inc. is a Dividend Aristocrat with 43 consecutive years of increases. PROCTER & GAMBLE Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, PG or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to PROCTER & GAMBLE Co's 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PG vs WMT: which is better for retirement income?
It depends on your priorities. PG for current income, PG for dividend growth, WMT for safety. Many retirement investors hold both for diversification.
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