ALB vs LYB: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and LyondellBasell Industries N.V. (LYB) are both in the Materials sector, making them natural rivals for dividend investors. LYB offers a significantly higher 9.40% yield compared to ALB's 1.02%, a gap of 8.38%. For dividend growth, LYB leads with a 5-year CAGR of 5.3% versus ALB's 0.9%. Both stocks carry a "Safe" dividend safety rating. ALB is a Dividend Contender with 23 years of consecutive increases.
Key Metrics Comparison
| Metric | ALB | LYB |
|---|
| Dividend Yield | 1.02% | 9.40% |
| Annual Dividend | $1.62 | $5.42 |
| 5-Year CAGR | 0.9% | 5.3% |
| Payout Ratio | 58% | 11% |
| Consecutive Years | 23 | 2 |
| Price | $166.33 | $57.80 |
Yield Comparison
LyondellBasell Industries N.V. (LYB) currently yields 9.40%, which is high for the broader market. That's 8.38% more than Albemarle Corp (ALB), which yields 1.02%. In dollar terms, LYB pays $5.42/share annually versus ALB's $1.62/share.
Dividend Growth
Over the past five years, LYB has grown its dividend at a 5.3% CAGR compared to ALB's 0.9%. 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%). LYB: Dividend growth has been steady, with a 3-year CAGR of 5.0% and a 5-year CAGR of 5.3% (10-year: 5.6%).
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. LYB's dividend safety is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. LYB's payout ratio of 11% is more conservative than ALB's 58%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LYB generates approximately $940/year in dividend income, compared to $102/year from ALB — a difference of $838/year. At $100,000, that gap widens to $8380/year.
Verdict
- Best for income: LYB
- Best for growth: LYB
- Best for safety: LYB
Frequently Asked Questions
Which has a higher dividend yield, ALB or LYB?
LyondellBasell Industries N.V. (LYB) has a higher dividend yield of 9.40% compared to Albemarle Corp (ALB) at 1.02%.
Is ALB or LYB a better dividend growth stock?
LyondellBasell Industries N.V. has the stronger dividend growth with a 5-year CAGR of 5.3%, compared to Albemarle Corp's 0.9%.
Which is safer for dividend income, ALB or LYB?
Albemarle Corp's dividend safety is rated "Safe" while LyondellBasell Industries N.V. 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 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x.
How much income does $10,000 in ALB vs LYB generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in LYB generates about $940/year.
Is ALB or LYB a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender with 23 consecutive years of increases. LyondellBasell Industries N.V. does not currently qualify for aristocrat status.
Which has a lower payout ratio, ALB or LYB?
LyondellBasell Industries N.V. has a lower payout ratio of 11% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs LYB: which is better for retirement income?
It depends on your priorities. LYB for current income, LYB for dividend growth, LYB for safety. Many retirement investors hold both for diversification.
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