ALB vs DOW: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and Dow Inc. (DOW) are both in the Materials sector, making them natural rivals for dividend investors. DOW offers a significantly higher 6.25% yield compared to ALB's 1.02%, a gap of 5.23%. For dividend growth, ALB leads with a 5-year CAGR of 0.9% versus DOW's -6.9%. Both stocks carry a "Safe" dividend safety rating. ALB is a Dividend Contender with 23 years of consecutive increases.
Key Metrics Comparison
| Metric | ALB | DOW |
|---|
| Dividend Yield | 1.02% | 6.25% |
| Annual Dividend | $1.62 | $2.10 |
| 5-Year CAGR | 0.9% | -6.9% |
| Payout Ratio | 58% | 7% |
| Consecutive Years | 23 | 0 |
| Price | $166.33 | $32.60 |
Yield Comparison
Dow Inc. (DOW) currently yields 6.25%, which is attractive for the broader market. That's 5.23% more than Albemarle Corp (ALB), which yields 1.02%. In dollar terms, DOW pays $2.10/share annually versus ALB's $1.62/share.
Dividend Growth
Over the past five years, ALB has grown its dividend at a 0.9% CAGR compared to DOW's -6.9%. ALB: Dividend growth has been steady, with a 3-year CAGR of 0.6% and a 5-year CAGR of 0.9% (10-year: 3.2%). DOW: Dividend growth is slowing — the 3-year CAGR of -13.4% trails the 5-year rate of -6.9% and the 10-year rate of 0.0%.
Dividend Safety
ALB's dividend safety is rated "Safe." The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x. DOW's dividend safety is rated "Safe." The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x. DOW's payout ratio of 7% is more conservative than ALB's 58%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in DOW generates approximately $625/year in dividend income, compared to $102/year from ALB — a difference of $523/year. At $100,000, that gap widens to $5230/year.
Verdict
- Best for income: DOW
- Best for growth: ALB
- Best for safety: DOW
Frequently Asked Questions
Which has a higher dividend yield, ALB or DOW?
Dow Inc. (DOW) has a higher dividend yield of 6.25% compared to Albemarle Corp (ALB) at 1.02%.
Is ALB or DOW a better dividend growth stock?
Albemarle Corp has the stronger dividend growth with a 5-year CAGR of 0.9%, compared to Dow Inc.'s -6.9%.
Which is safer for dividend income, ALB or DOW?
Albemarle Corp's dividend safety is rated "Safe" while Dow Inc. is rated "Safe." The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x. The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x.
How much income does $10,000 in ALB vs DOW generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in DOW generates about $625/year.
Is ALB or DOW a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender with 23 consecutive years of increases. Dow Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, ALB or DOW?
Dow Inc. has a lower payout ratio of 7% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs DOW: which is better for retirement income?
It depends on your priorities. DOW for current income, ALB for dividend growth, DOW for safety. Many retirement investors hold both for diversification.
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