Grainger (GWW) has raised its dividend for 53 consecutive years. The company generated $2.11B in operating cash flow against $421M in dividend payments.
Grainger’s free cash flow payout ratio sits at 27%. This leaves substantial room for dividend growth or economic downturns.
Grainger returned $1.62B to shareholders in 2024 through $421M in dividends and $1.20B in buybacks.
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W.W. Grainger Inc. (NYSE: GWW) pays an annual dividend of $8.62 per share with a yield of 0.89%. The company has raised its dividend for 53 consecutive years, placing it among the elite Dividend Kings. The most recent increase came in 2025, continuing a streak that began in 1972. Can Grainger keep it going?
W.W. Grainger (GWW) demonstrates exceptional dividend safety, boasting 53 consecutive years of dividend increases, backed by strong cash flow and low payout ratios. This infographic highlights its consistent financial strength and significant shareholder returns.
Metric | Value |
|---|---|
Annual Dividend | $8.62 per share |
Dividend Yield | 0.89% |
Consecutive Years of Increases | 53 years |
Dividend King Status | Yes |
Grainger generated $2.11 billion in operating cash flow in 2024 against $421 million in dividend payments. That gives the company 5.0x coverage, meaning it produces five dollars of operating cash for every dollar paid to shareholders. After subtracting $541 million in capital expenditures, free cash flow came to $1.57 billion, covering the dividend 3.7 times over.
The free cash flow payout ratio sits at 27%, leaving substantial room for dividend growth or economic downturns. The earnings payout ratio is 24% ($8.62 dividend divided by $35.70 in trailing twelve month earnings per share). Over the past five years, payout ratios have consistently remained in the 20% to 25% range, well below the 60% threshold that typically signals concern.
Metric | 2024 Value | Assessment |
|---|---|---|
Earnings Payout Ratio | 24% | Very Healthy |
FCF Payout Ratio | 27% | Very Healthy |
Operating Cash Flow Coverage | 5.0x | Strong |
Grainger has raised its dividend every year since 1972. The five-year compound annual growth rate stands at approximately 6%, with annual increases ranging from 5% to 8% in recent years. Total dividend payments have grown from $316 million in 2018 to $421 million in 2024, a 33% increase over six years.
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