DOW vs MLM: Dividend Comparison
Dividend data as of
Dow Inc. (DOW) and Martin Marietta Materials Inc (MLM) are both in the Materials sector, making them natural rivals for dividend investors. DOW offers a significantly higher 6.25% yield compared to MLM's 0.46%, a gap of 5.79%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
DOW yields 5.79% more than MLM. In dollar terms, DOW pays $2.10/share vs MLM's $3.32/share annually.
Dividend Growth
DOW: Dividend growth is slowing — the 3-year CAGR of -13.4% trails the 5-year rate of -6.9% and the 10-year rate of 0.0%.
Dividend Safety
DOW: The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x.
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 DOW vs MLM today?
At $32.60 per share, $10,000 buys about 306.7 shares of Dow Inc. (DOW). Each share pays $2.10 per year in dividends, so the position starts out generating roughly $644 per year — about $54 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.
DOW is the larger income stream from day one: $595 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.
Dow Inc. (DOW) is the one with a measurable track record here — dividend raises of about -6.9% a year over the past five years. If a proven raise history matters to you, DOW wins that dimension by default until MLM builds one.
Can DOW and MLM afford their dividends?
Dow Inc. (DOW) pays out about 7% of its earnings as dividends, which implies roughly 14.3x earnings coverage.
Martin Marietta Materials Inc (MLM) pays out about 16% of its earnings as dividends, which implies roughly 6.1x earnings coverage.
DOW'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 MLM if earnings weaken.
Which fits an early-retirement income portfolio better, DOW or MLM?
For income you need right now, Dow Inc. (DOW) leads: $100,000 invested today pays about $521 a month at the current 6.25% yield, versus $38 a month from Martin Marietta Materials Inc (MLM) at 0.46%.
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 $558/yr in DOW 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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