SHW vs XOM: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | SHW | XOM |
|---|
| Dividend Yield | 0.87% | 2.64% |
| Annual Dividend | $3.16 | $4.00 |
| 5-Year CAGR | 9.5% | 11.2% |
| Payout Ratio | 31% | 60% |
| Consecutive Years | 40 | 42 |
| Price | $368.50 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 1.77% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, XOM pays $4.00/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% CAGR compared to SHW's 9.5%. 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'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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. SHW's payout ratio of 31% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $87/year from SHW — a difference of $177/year. At $100,000, that gap widens to $1770/year.
Verdict
- Best for income: XOM
- Best for growth: XOM
- Best for safety: SHW
Frequently Asked Questions
Which has a higher dividend yield, SHW or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to Sherwin Williams Co (SHW) at 0.87%.
Is SHW or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Sherwin Williams Co's 9.5%.
Which is safer for dividend income, SHW or XOM?
Sherwin Williams Co's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in SHW vs XOM generate?
A $10,000 investment in SHW generates approximately $87/year in dividends, while the same amount in XOM generates about $264/year.
Is SHW or XOM a Dividend Aristocrat?
Sherwin Williams Co is a Dividend Aristocrat (40 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, SHW or XOM?
Sherwin Williams Co has a lower payout ratio of 31% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
SHW vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, XOM for dividend growth, SHW for safety. Many retirement investors hold both for diversification.
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