DOW vs VMC: Dividend Yield, Growth & Safety Comparison
Dow Inc. (DOW) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. DOW offers a significantly higher 6.25% yield compared to VMC's 0.58%, a gap of 5.67%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | DOW | VMC |
|---|
| Dividend Yield | 6.25% | 0.58% |
| Annual Dividend | $2.10 | $1.96 |
| 5-Year CAGR | -6.9% | N/A |
| Payout Ratio | 7% | 23% |
| Consecutive Years | 0 | N/A |
| Price | $32.60 | $326.35 |
Yield Comparison
Dow Inc. (DOW) currently yields 6.25%, which is attractive for the broader market. That's 5.67% more than Vulcan Materials CO (VMC), which yields 0.58%. In dollar terms, DOW pays $2.10/share annually versus VMC's $1.96/share.
Dividend Growth
DOW has a 5-year dividend CAGR of -6.9%. Growth data is not available for VMC. 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's dividend safety is rated "Safe." The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x. VMC's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. DOW's payout ratio of 7% is more conservative than VMC's 23%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in DOW generates approximately $625/year in dividend income, compared to $58/year from VMC — a difference of $567/year. At $100,000, that gap widens to $5670/year.
Verdict
- Best for income: DOW
- Best for safety: DOW
Frequently Asked Questions
Which has a higher dividend yield, DOW or VMC?
Dow Inc. (DOW) has a higher dividend yield of 6.25% compared to Vulcan Materials CO (VMC) at 0.58%.
Which is safer for dividend income, DOW or VMC?
Dow Inc.'s dividend safety is rated "Safe" while Vulcan Materials CO is rated "Safe." The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x. The payout ratio of 23% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in DOW vs VMC generate?
A $10,000 investment in DOW generates approximately $625/year in dividends, while the same amount in VMC generates about $58/year.
Which has a lower payout ratio, DOW or VMC?
Dow Inc. has a lower payout ratio of 7% compared to Vulcan Materials CO's 23%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOW vs VMC: which is better for retirement income?
It depends on your priorities. DOW for current income, DOW for safety. Many retirement investors hold both for diversification.
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