NUE vs VMC: Dividend Comparison
Dividend data as of
Nucor Corp (NUE) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. NUE edges ahead on yield at 1.15% versus VMC's 0.58%. Both stocks carry a "Safe" dividend safety rating. NUE is a Dividend Contender with 16 years of consecutive increases.
Verdict
Yield Analysis
NUE yields 0.57% more than VMC. In dollar terms, NUE pays $2.21/share vs VMC's $1.96/share annually.
Dividend Growth
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
NUE: The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x.
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 NUE vs VMC today?
At $182.61 per share, $10,000 buys about 54.8 shares of Nucor Corp (NUE). Each share pays $2.21 per year in dividends, so the position starts out generating roughly $121 per year — about $10 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.
NUE is the larger income stream from day one: $61 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.
Nucor Corp (NUE) is the one with a measurable track record here — dividend raises of about 6.5% a year over the past five years. If a proven raise history matters to you, NUE wins that dimension by default until VMC builds one.
Can NUE and VMC afford their dividends?
Nucor Corp (NUE) earns $7.51 per share against $2.21 paid out in dividends — 3.4x coverage (a 29% payout ratio).
Vulcan Materials CO (VMC) pays out about 23% of its earnings as dividends, which implies roughly 4.4x earnings coverage.
VMC'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 NUE if earnings weaken.
Which fits an early-retirement income portfolio better, NUE or VMC?
For income you need right now, Nucor Corp (NUE) leads: $100,000 invested today pays about $96 a month at the current 1.15% yield, versus $49 a month from Vulcan Materials CO (VMC) at 0.58%.
On consistency: NUE has raised its dividend 16 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 $243/yr in NUE 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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