MLM vs VMC: Dividend Comparison
Dividend data as of
Martin Marietta Materials Inc (MLM) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — MLM at 0.46% and VMC at 0.58%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
VMC yields 0.13% more than MLM. In dollar terms, MLM pays $3.32/share vs VMC's $1.96/share annually.
Dividend Growth
Dividend Safety
MLM: The payout ratio of 16% is well within sustainable levels, leaving room for future increases.
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 MLM vs VMC today?
At $680.12 per share, $10,000 buys about 14.7 shares of Martin Marietta Materials Inc (MLM). Each share pays $3.32 per year in dividends, so the position starts out generating roughly $49 per year — about $4 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.
VMC is the larger income stream from day one: $11 per year more on the same $10,000 invested.
Why is there no dividend growth comparison for MLM and VMC?
REWD's dividend database has no five-year growth rate for Martin Marietta Materials Inc (MLM) or 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 MLM: a 0.46% current yield and a 16% payout ratio, which leaves ample room to raise the payout from here. Until a multi-year raise history exists, treat any growth assumption for MLM as a guess rather than a trend.
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.
Can MLM and VMC afford their dividends?
Martin Marietta Materials Inc (MLM) pays out about 16% of its earnings as dividends, which implies roughly 6.1x earnings coverage.
Vulcan Materials CO (VMC) pays out about 23% of its earnings as dividends, which implies roughly 4.4x earnings coverage.
MLM'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, MLM or VMC?
For income you need right now, Vulcan Materials CO (VMC) leads: $100,000 invested today pays about $49 a month at the current 0.58% yield, versus $38 a month from Martin Marietta Materials Inc (MLM) at 0.46%.
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 $48/yr in MLM 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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