SHW vs WMT: Dividend Yield, Growth & Safety Comparison
Sherwin Williams Co (SHW) from Materials and Walmart Inc. (WMT) from Consumer Staples offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — SHW at 0.87% and WMT at 0.72%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus WMT's 6.4%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | SHW | WMT |
|---|
| Dividend Yield | 0.87% | 0.72% |
| Annual Dividend | $3.16 | $0.91 |
| 5-Year CAGR | 9.5% | 6.4% |
| Payout Ratio | 31% | 32% |
| Consecutive Years | 40 | 43 |
| Price | $368.50 | $133.79 |
Yield Comparison
Sherwin Williams Co (SHW) currently yields 0.87%, which is very low for the broader market. That's 0.15% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, SHW pays $3.16/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% CAGR compared to WMT's 6.4%. 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%. 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
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. 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. Both have similar payout ratios — SHW at 31% and WMT at 32%.
Income Comparison
A $10,000 investment in SHW generates approximately $87/year in dividend income, compared to $72/year from WMT — a difference of $15/year. At $100,000, that gap widens to $150/year.
Verdict
- Best for income: SHW
- Best for growth: SHW
Frequently Asked Questions
Which has a higher dividend yield, SHW or WMT?
Sherwin Williams Co (SHW) has a higher dividend yield of 0.87% compared to Walmart Inc. (WMT) at 0.72%.
Is SHW or WMT a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to Walmart Inc.'s 6.4%.
Which is safer for dividend income, SHW or WMT?
Sherwin Williams Co's dividend safety is rated "Safe" while Walmart Inc. is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. 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 SHW vs WMT generate?
A $10,000 investment in SHW generates approximately $87/year in dividends, while the same amount in WMT generates about $72/year.
Is SHW or WMT a Dividend Aristocrat?
Sherwin Williams Co is a Dividend Aristocrat (40 years) and Walmart Inc. is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, SHW or WMT?
Sherwin Williams Co has a lower payout ratio of 31% compared to Walmart Inc.'s 32%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
SHW vs WMT: which is better for retirement income?
It depends on your priorities. SHW for current income, SHW for dividend growth. Many retirement investors hold both for diversification.
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