LYB vs VMC: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
LYB yields 8.82% more than VMC. In dollar terms, LYB pays $5.42/share vs VMC's $1.96/share annually.
Dividend Growth
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: The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x.
VMC: The payout ratio of 23% 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 LYB vs VMC today?
At $57.80 per share, $10,000 buys about 173.0 shares of LyondellBasell Industries N.V. (LYB). Each share pays $5.42 per year in dividends, so the position starts out generating roughly $938 per year — about $78 a month.
At $326.35 per share, $10,000 buys about 30.6 shares of Vulcan Materials CO (VMC). Each share pays $1.96 per year in dividends, so the position starts out generating roughly $60 per year — about $5 a month.
LYB is the larger income stream from day one: $878 per year more on the same $10,000 invested.
Why is there no dividend growth comparison for VMC?
REWD's dividend database has no five-year growth rate for Vulcan Materials CO (VMC) — 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 VMC: a 0.58% current yield and a 23% payout ratio, which leaves ample room to raise the payout from here. Until a multi-year raise history exists, treat any growth assumption for VMC as a guess rather than a trend.
LyondellBasell Industries N.V. (LYB) is the one with a measurable track record here — dividend raises of about 5.3% a year over the past five years. If a proven raise history matters to you, LYB wins that dimension by default until VMC builds one.
Can LYB and VMC afford their dividends?
LyondellBasell Industries N.V. (LYB) pays out about 11% of its earnings as dividends, which implies roughly 8.7x earnings coverage.
Vulcan Materials CO (VMC) pays out about 23% of its earnings as dividends, which implies roughly 4.4x earnings coverage.
LYB'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 VMC if earnings weaken.
Which fits an early-retirement income portfolio better, LYB or VMC?
For income you need right now, LyondellBasell Industries N.V. (LYB) leads: $100,000 invested today pays about $783 a month at the current 9.40% yield, versus $49 a month from Vulcan Materials CO (VMC) at 0.58%.
On consistency: LYB has raised its dividend 2 consecutive years.
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 $3,854/yr in LYB vs $62/yr in VMC 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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