ALB vs DOW: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
DOW yields 5.23% more than ALB. In dollar terms, ALB pays $1.62/share vs DOW's $2.10/share annually.
Dividend Growth
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: The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x.
DOW: The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in ALB vs DOW today?
At $166.33 per share, $10,000 buys about 60.1 shares of Albemarle Corp (ALB). Each share pays $1.62 per year in dividends, so the position starts out generating roughly $97 per year — about $8 a month.
At $32.60 per share, $10,000 buys about 306.7 shares of Dow Inc. (DOW). Each share pays $2.10 per year in dividends, so the position starts out generating roughly $644 per year — about $54 a month.
DOW is the larger income stream from day one: $547 per year more on the same $10,000 invested.
What could $10,000 of ALB or DOW income look like in 10 years?
Albemarle Corp (ALB) has raised its dividend about 0.9% a year over the past five years. If that pace held, the $102 per year that $10,000 generates today at the current 1.02% yield would reach $112 per year by 2036 — a 1.1% yield on the original cost.
Dow Inc. (DOW)'s dividend has shrunk about 6.9% a year over the past five years. If that trend continued, today's $625 per year on $10,000 (at the current 6.25% yield) would fall to $304 per year by 2036.
On those trailing rates, DOW pays more in 2036: $304 versus $112 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would ALB's dividend growth overtake DOW's higher yield?
Albemarle Corp (ALB) yields less today (1.02% vs 6.25%) but has grown its dividend faster — 0.9% vs -6.9% a year over the past five years. If both trends continued, a $10,000 position in ALB would start out-earning the same position in DOW around 2049 (roughly 23 years from now), paying about $127 per year at the crossover. Before that point, DOW pays more each year; after it, the gap compounds in ALB's favor.
Can ALB and DOW afford their dividends?
Albemarle Corp (ALB) pays out about 58% of its earnings as dividends, which implies roughly 1.7x earnings coverage.
Dow Inc. (DOW) pays out about 7% of its earnings as dividends, which implies roughly 14.3x earnings coverage.
DOW'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 ALB if earnings weaken.
Which fits an early-retirement income portfolio better, ALB or DOW?
For income you need right now, Dow Inc. (DOW) leads: $100,000 invested today pays about $521 a month at the current 6.25% yield, versus $85 a month from Albemarle Corp (ALB) at 1.02%.
With a decade or more before the income is needed, ALB's faster dividend growth (0.9% vs -6.9% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: ALB has raised its dividend 23 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 $124/yr in ALB vs $558/yr in DOW 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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