ALB vs NUE: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and Nucor Corp (NUE) are both in the Materials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — ALB at 1.02% and NUE at 1.15%. For dividend growth, NUE leads with a 5-year CAGR of 6.5% versus ALB's 0.9%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Contenders.
Key Metrics Comparison
| Metric | ALB | NUE |
|---|
| Dividend Yield | 1.02% | 1.15% |
| Annual Dividend | $1.62 | $2.21 |
| 5-Year CAGR | 0.9% | 6.5% |
| Payout Ratio | 58% | 29% |
| Consecutive Years | 23 | 16 |
| Price | $166.33 | $182.61 |
Yield Comparison
Nucor Corp (NUE) currently yields 1.15%, which is modest for the broader market. That's 0.13% more than Albemarle Corp (ALB), which yields 1.02%. In dollar terms, NUE pays $2.21/share annually versus ALB's $1.62/share.
Dividend Growth
Over the past five years, NUE has grown its dividend at a 6.5% 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%). NUE: Dividend growth is slowing — the 3-year CAGR of 3.3% trails the 5-year rate of 6.5% and the 10-year rate of 4.4%.
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. NUE's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. NUE's payout ratio of 29% is more conservative than ALB's 58%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in NUE generates approximately $115/year in dividend income, compared to $102/year from ALB — a difference of $13/year. At $100,000, that gap widens to $130/year.
Verdict
- Best for income: NUE
- Best for growth: NUE
- Best for safety: NUE
Frequently Asked Questions
Which has a higher dividend yield, ALB or NUE?
Nucor Corp (NUE) has a higher dividend yield of 1.15% compared to Albemarle Corp (ALB) at 1.02%.
Is ALB or NUE a better dividend growth stock?
Nucor Corp has the stronger dividend growth with a 5-year CAGR of 6.5%, compared to Albemarle Corp's 0.9%.
Which is safer for dividend income, ALB or NUE?
Albemarle Corp's dividend safety is rated "Safe" while Nucor Corp 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 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x.
How much income does $10,000 in ALB vs NUE generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in NUE generates about $115/year.
Is ALB or NUE a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender (23 years) and Nucor Corp is a Dividend Contender (16 years).
Which has a lower payout ratio, ALB or NUE?
Nucor Corp has a lower payout ratio of 29% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs NUE: which is better for retirement income?
It depends on your priorities. NUE for current income, NUE for dividend growth, NUE for safety. Many retirement investors hold both for diversification.
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