MLM vs SHW: Dividend Yield, Growth & Safety Comparison
Martin Marietta Materials Inc (MLM) and Sherwin Williams Co (SHW) are both in the Materials sector, making them natural rivals for dividend investors. SHW edges ahead on yield at 0.87% versus MLM's 0.46%. Both stocks carry a "Safe" dividend safety rating. SHW is a Dividend Aristocrat with 40 years of consecutive increases.
Key Metrics Comparison
| Metric | MLM | SHW |
|---|
| Dividend Yield | 0.46% | 0.87% |
| Annual Dividend | $3.32 | $3.16 |
| 5-Year CAGR | N/A | 9.5% |
| Payout Ratio | 16% | 31% |
| Consecutive Years | N/A | 40 |
| Price | $680.12 | $368.50 |
Yield Comparison
Sherwin Williams Co (SHW) currently yields 0.87%, which is very low for the broader market. That's 0.41% more than Martin Marietta Materials Inc (MLM), which yields 0.46%. In dollar terms, SHW pays $3.16/share annually versus MLM's $3.32/share.
Dividend Growth
SHW has a 5-year dividend CAGR of 9.5%. Growth data is not available for MLM. SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
Dividend Safety
MLM's dividend safety is rated "Safe." The payout ratio of 16% is well within sustainable levels, leaving room for future increases. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. MLM's payout ratio of 16% is more conservative than SHW's 31%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SHW generates approximately $87/year in dividend income, compared to $46/year from MLM — a difference of $41/year. At $100,000, that gap widens to $410/year.
Verdict
- Best for income: SHW
- Best for safety: MLM
Frequently Asked Questions
Which has a higher dividend yield, MLM or SHW?
Sherwin Williams Co (SHW) has a higher dividend yield of 0.87% compared to Martin Marietta Materials Inc (MLM) at 0.46%.
Which is safer for dividend income, MLM or SHW?
Martin Marietta Materials Inc's dividend safety is rated "Safe" while Sherwin Williams Co is rated "Safe." The payout ratio of 16% is well within sustainable levels, leaving room for future increases. The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in MLM vs SHW generate?
A $10,000 investment in MLM generates approximately $46/year in dividends, while the same amount in SHW generates about $87/year.
Is MLM or SHW a Dividend Aristocrat?
Sherwin Williams Co is a Dividend Aristocrat with 40 consecutive years of increases. Martin Marietta Materials Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, MLM or SHW?
Martin Marietta Materials Inc has a lower payout ratio of 16% compared to Sherwin Williams Co's 31%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MLM vs SHW: which is better for retirement income?
It depends on your priorities. SHW for current income, MLM for safety. Many retirement investors hold both for diversification.
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