MLM vs NUE: Dividend Yield, Growth & Safety Comparison
Martin Marietta Materials Inc (MLM) and Nucor Corp (NUE) are both in the Materials sector, making them natural rivals for dividend investors. NUE edges ahead on yield at 1.15% versus MLM's 0.46%. Both stocks carry a "Safe" dividend safety rating. NUE is a Dividend Contender with 16 years of consecutive increases.
Key Metrics Comparison
| Metric | MLM | NUE |
|---|
| Dividend Yield | 0.46% | 1.15% |
| Annual Dividend | $3.32 | $2.21 |
| 5-Year CAGR | N/A | 6.5% |
| Payout Ratio | 16% | 29% |
| Consecutive Years | N/A | 16 |
| Price | $680.12 | $182.61 |
Yield Comparison
Nucor Corp (NUE) currently yields 1.15%, which is modest for the broader market. That's 0.69% more than Martin Marietta Materials Inc (MLM), which yields 0.46%. In dollar terms, NUE pays $2.21/share annually versus MLM's $3.32/share.
Dividend Growth
NUE has a 5-year dividend CAGR of 6.5%. Growth data is not available for MLM. NUE: Dividend growth is slowing — the 3-year CAGR of 3.3% trails the 5-year rate of 6.5% and the 10-year rate of 4.4%.
Dividend Safety
MLM's dividend safety is rated "Safe." The payout ratio of 16% is well within sustainable levels, leaving room for future increases. NUE's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. MLM's payout ratio of 16% is more conservative than NUE's 29%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in NUE generates approximately $115/year in dividend income, compared to $46/year from MLM — a difference of $69/year. At $100,000, that gap widens to $690/year.
Verdict
- Best for income: NUE
- Best for safety: MLM
Frequently Asked Questions
Which has a higher dividend yield, MLM or NUE?
Nucor Corp (NUE) has a higher dividend yield of 1.15% compared to Martin Marietta Materials Inc (MLM) at 0.46%.
Which is safer for dividend income, MLM or NUE?
Martin Marietta Materials Inc's dividend safety is rated "Safe" while Nucor Corp is rated "Safe." The payout ratio of 16% is well within sustainable levels, leaving room for future increases. The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x.
How much income does $10,000 in MLM vs NUE generate?
A $10,000 investment in MLM generates approximately $46/year in dividends, while the same amount in NUE generates about $115/year.
Is MLM or NUE a Dividend Aristocrat?
Nucor Corp is a Dividend Contender with 16 consecutive years of increases. Martin Marietta Materials Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, MLM or NUE?
Martin Marietta Materials Inc has a lower payout ratio of 16% compared to Nucor Corp's 29%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MLM vs NUE: which is better for retirement income?
It depends on your priorities. NUE for current income, MLM for safety. Many retirement investors hold both for diversification.
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