SHW vs WMT: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
SHW yields 0.15% more than WMT. In dollar terms, SHW pays $3.16/share vs WMT's $0.91/share annually.
Dividend Growth
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: The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
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 SHW vs WMT today?
At $368.50 per share, $10,000 buys about 27.1 shares of Sherwin Williams Co (SHW). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $86 per year — about $7 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.
SHW is the larger income stream from day one: $18 per year more on the same $10,000 invested.
What could $10,000 of SHW or WMT income look like in 10 years?
Sherwin Williams Co (SHW) has raised its dividend about 9.5% a year over the past five years. If that pace held, the $87 per year that $10,000 generates today at the current 0.87% yield would reach $214 per year by 2036 — a 2.1% 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, SHW pays more in 2036: $214 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 SHW's higher yield?
It doesn't, on the trailing numbers. Sherwin Williams Co (SHW) yields more today (0.87% vs 0.72%) and has also grown its dividend at least as fast (9.5% vs 6.4% a year over five years). Unless WMT accelerates its raises or SHW stumbles, WMT never closes the income gap — SHW wins on both current income and growth.
Can SHW and WMT afford their dividends?
Sherwin Williams Co (SHW) earns $10.28 per share against $3.16 paid out in dividends — 3.3x coverage (a 31% payout ratio).
Walmart Inc. (WMT) earns $2.86 per share against $0.91 paid out in dividends — 3.1x coverage (a 32% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, SHW or WMT?
For income you need right now, Sherwin Williams Co (SHW) leads: $100,000 invested today pays about $72 a month at the current 0.87% yield, versus $60 a month from Walmart Inc. (WMT) at 0.72%.
SHW also leads on dividend growth (9.5% vs 6.4% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: SHW has raised its dividend 40 consecutive years; 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 $234/yr in SHW 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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