ALB vs NUE: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
NUE yields 0.13% more than ALB. In dollar terms, ALB pays $1.62/share vs NUE's $2.21/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%).
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: The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x.
NUE: The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in ALB vs NUE 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 $182.61 per share, $10,000 buys about 54.8 shares of Nucor Corp (NUE). Each share pays $2.21 per year in dividends, so the position starts out generating roughly $121 per year — about $10 a month.
NUE is the larger income stream from day one: $24 per year more on the same $10,000 invested.
What could $10,000 of ALB or NUE 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.
Nucor Corp (NUE) has raised its dividend about 6.5% a year over the past five years. If that pace held, the $115 per year that $10,000 generates today at the current 1.15% yield would reach $217 per year by 2036 — a 2.2% yield on the original cost.
On those trailing rates, NUE pays more in 2036: $217 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 NUE's higher yield?
It doesn't, on the trailing numbers. Nucor Corp (NUE) yields more today (1.15% vs 1.02%) and has also grown its dividend at least as fast (6.5% vs 0.9% a year over five years). Unless ALB accelerates its raises or NUE stumbles, ALB never closes the income gap — NUE wins on both current income and growth.
Can ALB and NUE afford their dividends?
Albemarle Corp (ALB) pays out about 58% of its earnings as dividends, which implies roughly 1.7x earnings coverage.
Nucor Corp (NUE) earns $7.51 per share against $2.21 paid out in dividends — 3.4x coverage (a 29% payout ratio).
NUE'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 NUE?
For income you need right now, Nucor Corp (NUE) leads: $100,000 invested today pays about $96 a month at the current 1.15% yield, versus $85 a month from Albemarle Corp (ALB) at 1.02%.
NUE also leads on dividend growth (6.5% vs 0.9% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: ALB has raised its dividend 23 consecutive years; NUE has raised its dividend 16 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 $243/yr in NUE 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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