LYB vs VMC: Dividend Yield, Growth & Safety Comparison
LyondellBasell Industries N.V. (LYB) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. LYB offers a significantly higher 9.40% yield compared to VMC's 0.58%, a gap of 8.82%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | LYB | VMC |
|---|
| Dividend Yield | 9.40% | 0.58% |
| Annual Dividend | $5.42 | $1.96 |
| 5-Year CAGR | 5.3% | N/A |
| Payout Ratio | 11% | 23% |
| Consecutive Years | 2 | N/A |
| Price | $57.80 | $326.35 |
Yield Comparison
LyondellBasell Industries N.V. (LYB) currently yields 9.40%, which is high for the broader market. That's 8.82% more than Vulcan Materials CO (VMC), which yields 0.58%. In dollar terms, LYB pays $5.42/share annually versus VMC's $1.96/share.
Dividend Growth
LYB has a 5-year dividend CAGR of 5.3%. Growth data is not available for VMC. LYB: Dividend growth has been steady, with a 3-year CAGR of 5.0% and a 5-year CAGR of 5.3% (10-year: 5.6%).
Dividend Safety
LYB's dividend safety is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. VMC's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. LYB's payout ratio of 11% is more conservative than VMC's 23%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LYB generates approximately $940/year in dividend income, compared to $58/year from VMC — a difference of $882/year. At $100,000, that gap widens to $8820/year.
Verdict
- Best for income: LYB
- Best for safety: LYB
Frequently Asked Questions
Which has a higher dividend yield, LYB or VMC?
LyondellBasell Industries N.V. (LYB) has a higher dividend yield of 9.40% compared to Vulcan Materials CO (VMC) at 0.58%.
Which is safer for dividend income, LYB or VMC?
LyondellBasell Industries N.V.'s dividend safety is rated "Safe" while Vulcan Materials CO is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. The payout ratio of 23% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in LYB vs VMC generate?
A $10,000 investment in LYB generates approximately $940/year in dividends, while the same amount in VMC generates about $58/year.
Which has a lower payout ratio, LYB or VMC?
LyondellBasell Industries N.V. has a lower payout ratio of 11% compared to Vulcan Materials CO's 23%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LYB vs VMC: which is better for retirement income?
It depends on your priorities. LYB for current income, LYB for safety. Many retirement investors hold both for diversification.
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