ALB vs MLM: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and Martin Marietta Materials Inc (MLM) are both in the Materials sector, making them natural rivals for dividend investors. ALB edges ahead on yield at 1.02% versus MLM's 0.46%. Both stocks carry a "Safe" dividend safety rating. ALB is a Dividend Contender with 23 years of consecutive increases.
Key Metrics Comparison
| Metric | ALB | MLM |
|---|
| Dividend Yield | 1.02% | 0.46% |
| Annual Dividend | $1.62 | $3.32 |
| 5-Year CAGR | 0.9% | N/A |
| Payout Ratio | 58% | 16% |
| Consecutive Years | 23 | N/A |
| Price | $166.33 | $680.12 |
Yield Comparison
Albemarle Corp (ALB) currently yields 1.02%, which is modest for the broader market. That's 0.56% more than Martin Marietta Materials Inc (MLM), which yields 0.46%. In dollar terms, ALB pays $1.62/share annually versus MLM's $3.32/share.
Dividend Growth
ALB has a 5-year dividend CAGR of 0.9%. Growth data is not available for MLM. 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%).
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. MLM's dividend safety is rated "Safe." The payout ratio of 16% is well within sustainable levels, leaving room for future increases. MLM's payout ratio of 16% is more conservative than ALB's 58%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in ALB generates approximately $102/year in dividend income, compared to $46/year from MLM — a difference of $56/year. At $100,000, that gap widens to $560/year.
Verdict
- Best for income: ALB
- Best for safety: MLM
Frequently Asked Questions
Which has a higher dividend yield, ALB or MLM?
Albemarle Corp (ALB) has a higher dividend yield of 1.02% compared to Martin Marietta Materials Inc (MLM) at 0.46%.
Which is safer for dividend income, ALB or MLM?
Albemarle Corp's dividend safety is rated "Safe" while Martin Marietta Materials 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 16% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in ALB vs MLM generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in MLM generates about $46/year.
Is ALB or MLM a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender with 23 consecutive years of increases. Martin Marietta Materials Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, ALB or MLM?
Martin Marietta Materials Inc has a lower payout ratio of 16% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs MLM: which is better for retirement income?
It depends on your priorities. ALB for current income, MLM for safety. Many retirement investors hold both for diversification.
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