ALB vs MLM: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
ALB yields 0.56% more than MLM. In dollar terms, ALB pays $1.62/share vs MLM's $3.32/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%).
Dividend Safety
ALB: The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x.
MLM: The payout ratio of 16% is well within sustainable levels, leaving room for future increases.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in ALB vs MLM 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 $680.12 per share, $10,000 buys about 14.7 shares of Martin Marietta Materials Inc (MLM). Each share pays $3.32 per year in dividends, so the position starts out generating roughly $49 per year — about $4 a month.
ALB is the larger income stream from day one: $49 per year more on the same $10,000 invested.
Why is there no dividend growth comparison for MLM?
REWD's dividend database has no five-year growth rate for Martin Marietta Materials Inc (MLM) — most often because the dividend history is too short to compute one, which is common for companies that began paying dividends only in the past few years.
What the data does show for MLM: a 0.46% current yield and a 16% payout ratio, which leaves ample room to raise the payout from here. Until a multi-year raise history exists, treat any growth assumption for MLM as a guess rather than a trend.
Albemarle Corp (ALB) is the one with a measurable track record here — dividend raises of about 0.9% a year over the past five years. If a proven raise history matters to you, ALB wins that dimension by default until MLM builds one.
Can ALB and MLM afford their dividends?
Albemarle Corp (ALB) pays out about 58% of its earnings as dividends, which implies roughly 1.7x earnings coverage.
Martin Marietta Materials Inc (MLM) pays out about 16% of its earnings as dividends, which implies roughly 6.1x earnings coverage.
MLM'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 MLM?
For income you need right now, Albemarle Corp (ALB) leads: $100,000 invested today pays about $85 a month at the current 1.02% yield, versus $38 a month from Martin Marietta Materials Inc (MLM) at 0.46%.
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 $48/yr in MLM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR (0% where growth history is unavailable). A projection, not a prediction — no price appreciation modeled.
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