PNR vs SWK: Dividend Yield, Growth & Safety Comparison
PENTAIR plc (PNR) 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 PNR's 1.01%, a gap of 2.58%. For dividend growth, PNR leads with a 5-year CAGR of 13.6% 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 | PNR | SWK |
|---|
| Dividend Yield | 1.01% | 3.60% |
| Annual Dividend | $1.00 | $3.30 |
| 5-Year CAGR | 13.6% | 2.6% |
| Payout Ratio | 25% | 1% |
| Consecutive Years | 0 | 28 |
| Price | $101.30 | $91.08 |
Yield Comparison
Stanley Black & Decker, Inc. (SWK) currently yields 3.60%, which is solid for the broader market. That's 2.58% more than PENTAIR plc (PNR), which yields 1.01%. In dollar terms, SWK pays $3.30/share annually versus PNR's $1.00/share.
Dividend Growth
Over the past five years, PNR has grown its dividend at a 13.6% CAGR compared to SWK's 2.6%. PNR: Dividend growth is accelerating — the 3-year CAGR of 23.1% exceeds the 5-year rate of 13.6% and the 10-year rate of 4.4%. 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
PNR's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x. 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 PNR's 25%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SWK generates approximately $360/year in dividend income, compared to $101/year from PNR — a difference of $259/year. At $100,000, that gap widens to $2590/year.
Verdict
- Best for income: SWK
- Best for growth: PNR
- Best for safety: SWK
Frequently Asked Questions
Which has a higher dividend yield, PNR or SWK?
Stanley Black & Decker, Inc. (SWK) has a higher dividend yield of 3.60% compared to PENTAIR plc (PNR) at 1.01%.
Is PNR or SWK a better dividend growth stock?
PENTAIR plc has the stronger dividend growth with a 5-year CAGR of 13.6%, compared to Stanley Black & Decker, Inc.'s 2.6%.
Which is safer for dividend income, PNR or SWK?
PENTAIR plc's dividend safety is rated "Safe" while Stanley Black & Decker, Inc. is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x. 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 PNR vs SWK generate?
A $10,000 investment in PNR generates approximately $101/year in dividends, while the same amount in SWK generates about $360/year.
Is PNR or SWK a Dividend Aristocrat?
Stanley Black & Decker, Inc. is a Dividend Aristocrat with 28 consecutive years of increases. PENTAIR plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, PNR or SWK?
Stanley Black & Decker, Inc. has a lower payout ratio of 1% compared to PENTAIR plc's 25%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PNR vs SWK: which is better for retirement income?
It depends on your priorities. SWK for current income, PNR for dividend growth, SWK for safety. Many retirement investors hold both for diversification.
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