Grainger Generates Five Dollars of Cash for Every Dollar Paid to Shareholders

W.W. Grainger Inc. (NYSE: GWW) pays an yearly dividend of $8.62 per stock with a output of 0.89%. The institution has raised its dividend for 53 consecutive years, placing it among the elite Dividend Kings. The astir caller summation came successful 2025, continuing a streak that began successful 1972. Can Grainger support it going?

W.W. Grainger (GWW) demonstrates exceptional dividend safety, boasting 53 consecutive years of dividend increases, backed by beardown currency travel and debased payout ratios. This infographic highlights its accordant fiscal spot and important shareholder returns.

Grainger generated $2.11 cardinal successful operating currency travel successful 2024 against $421 cardinal successful dividend payments. That gives the institution 5.0x coverage, meaning it produces 5 dollars of operating currency for each dollar paid to shareholders. After subtracting $541 cardinal successful superior expenditures, escaped currency travel came to $1.57 billion, covering the dividend 3.7 times over.

The escaped currency travel payout ratio sits astatine 27%, leaving important country for dividend maturation oregon economical downturns. The net payout ratio is 24% ($8.62 dividend divided by $35.70 successful trailing 12 period net per share). Over the past 5 years, payout ratios person consistently remained successful the 20% to 25% range, good beneath the 60% threshold that typically signals concern.

Grainger has raised its dividend each twelvemonth since 1972. The five-year compound yearly maturation complaint stands astatine astir 6%, with yearly increases ranging from 5% to 8% successful caller years. Total dividend payments person grown from $316 cardinal successful 2018 to $421 cardinal successful 2024, a 33% summation implicit six years.