ALB vs VMC: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. ALB edges ahead on yield at 1.02% versus VMC's 0.58%. Both stocks carry a "Safe" dividend safety rating. ALB is a Dividend Contender with 23 years of consecutive increases.
Key Metrics Comparison
| Metric | ALB | VMC |
|---|
| Dividend Yield | 1.02% | 0.58% |
| Annual Dividend | $1.62 | $1.96 |
| 5-Year CAGR | 0.9% | N/A |
| Payout Ratio | 58% | 23% |
| Consecutive Years | 23 | N/A |
| Price | $166.33 | $326.35 |
Yield Comparison
Albemarle Corp (ALB) currently yields 1.02%, which is modest for the broader market. That's 0.44% more than Vulcan Materials CO (VMC), which yields 0.58%. In dollar terms, ALB pays $1.62/share annually versus VMC's $1.96/share.
Dividend Growth
ALB has a 5-year dividend CAGR of 0.9%. Growth data is not available for VMC. 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. VMC's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. VMC's payout ratio of 23% 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 $58/year from VMC — a difference of $44/year. At $100,000, that gap widens to $440/year.
Verdict
- Best for income: ALB
- Best for safety: VMC
Frequently Asked Questions
Which has a higher dividend yield, ALB or VMC?
Albemarle Corp (ALB) has a higher dividend yield of 1.02% compared to Vulcan Materials CO (VMC) at 0.58%.
Which is safer for dividend income, ALB or VMC?
Albemarle Corp's dividend safety is rated "Safe" while Vulcan Materials 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 23% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in ALB vs VMC generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in VMC generates about $58/year.
Is ALB or VMC a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender with 23 consecutive years of increases. Vulcan Materials CO does not currently qualify for aristocrat status.
Which has a lower payout ratio, ALB or VMC?
Vulcan Materials CO has a lower payout ratio of 23% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs VMC: which is better for retirement income?
It depends on your priorities. ALB for current income, VMC for safety. Many retirement investors hold both for diversification.
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