SHW vs XOM: Dividend Comparison
Dividend data as of
Sherwin Williams Co (SHW) from Materials and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. XOM offers a significantly higher 2.64% yield compared to SHW's 0.87%, a gap of 1.77%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus SHW's 9.5%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Verdict
Yield Analysis
XOM yields 1.77% more than SHW. In dollar terms, SHW pays $3.16/share vs XOM's $4.00/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%.
XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
Dividend Safety
SHW: The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
XOM: The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in SHW vs XOM 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 $148.59 per share, $10,000 buys about 67.3 shares of Exxon Mobil Corp (XOM). Each share pays $4.00 per year in dividends, so the position starts out generating roughly $269 per year — about $22 a month.
XOM is the larger income stream from day one: $183 per year more on the same $10,000 invested.
What could $10,000 of SHW or XOM 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.
Exxon Mobil Corp (XOM) has raised its dividend about 11.2% a year over the past five years. If that pace held, the $264 per year that $10,000 generates today at the current 2.64% yield would reach $760 per year by 2036 — a 7.6% yield on the original cost.
On those trailing rates, XOM pays more in 2036: $760 versus $214 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SHW's dividend growth overtake XOM's higher yield?
It doesn't, on the trailing numbers. Exxon Mobil Corp (XOM) yields more today (2.64% vs 0.87%) and has also grown its dividend at least as fast (11.2% vs 9.5% a year over five years). Unless SHW accelerates its raises or XOM stumbles, SHW never closes the income gap — XOM wins on both current income and growth.
Can SHW and XOM 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).
Exxon Mobil Corp (XOM) earns $6.70 per share against $4.00 paid out in dividends — 1.7x coverage (a 60% payout ratio).
SHW'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 XOM if earnings weaken.
Which fits an early-retirement income portfolio better, SHW or XOM?
For income you need right now, Exxon Mobil Corp (XOM) leads: $100,000 invested today pays about $220 a month at the current 2.64% yield, versus $72 a month from Sherwin Williams Co (SHW) at 0.87%.
XOM also leads on dividend growth (11.2% vs 9.5% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: SHW has raised its dividend 40 consecutive years; XOM has raised its dividend 42 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 $986/yr in XOM 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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