ALB vs SHW: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and Sherwin Williams Co (SHW) are both in the Materials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — ALB at 1.02% and SHW at 0.87%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus ALB's 0.9%. Both stocks carry a "Safe" dividend safety rating. ALB is a Dividend Contender while SHW is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | ALB | SHW |
|---|
| Dividend Yield | 1.02% | 0.87% |
| Annual Dividend | $1.62 | $3.16 |
| 5-Year CAGR | 0.9% | 9.5% |
| Payout Ratio | 58% | 31% |
| Consecutive Years | 23 | 40 |
| Price | $166.33 | $368.50 |
Yield Comparison
Albemarle Corp (ALB) currently yields 1.02%, which is modest for the broader market. That's 0.15% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, ALB pays $1.62/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% 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%). SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
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. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. SHW's payout ratio of 31% 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 $87/year from SHW — a difference of $15/year. At $100,000, that gap widens to $150/year.
Verdict
- Best for income: ALB
- Best for growth: SHW
- Best for safety: SHW
Frequently Asked Questions
Which has a higher dividend yield, ALB or SHW?
Albemarle Corp (ALB) has a higher dividend yield of 1.02% compared to Sherwin Williams Co (SHW) at 0.87%.
Is ALB or SHW a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to Albemarle Corp's 0.9%.
Which is safer for dividend income, ALB or SHW?
Albemarle Corp's dividend safety is rated "Safe" while Sherwin Williams Co 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 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in ALB vs SHW generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in SHW generates about $87/year.
Is ALB or SHW a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender (23 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, ALB or SHW?
Sherwin Williams Co has a lower payout ratio of 31% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs SHW: which is better for retirement income?
It depends on your priorities. ALB for current income, SHW for dividend growth, SHW for safety. Many retirement investors hold both for diversification.
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