NUE vs VMC: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | NUE | VMC |
|---|
| Dividend Yield | 1.15% | 0.58% |
| Annual Dividend | $2.21 | $1.96 |
| 5-Year CAGR | 6.5% | N/A |
| Payout Ratio | 29% | 23% |
| Consecutive Years | 16 | N/A |
| Price | $182.61 | $326.35 |
Yield Comparison
Nucor Corp (NUE) currently yields 1.15%, which is modest for the broader market. That's 0.57% more than Vulcan Materials CO (VMC), which yields 0.58%. In dollar terms, NUE pays $2.21/share annually versus VMC's $1.96/share.
Dividend Growth
NUE has a 5-year dividend CAGR of 6.5%. Growth data is not available for VMC. 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'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. VMC's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. VMC's payout ratio of 23% 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 $58/year from VMC — a difference of $57/year. At $100,000, that gap widens to $570/year.
Verdict
- Best for income: NUE
- Best for safety: VMC
Frequently Asked Questions
Which has a higher dividend yield, NUE or VMC?
Nucor Corp (NUE) has a higher dividend yield of 1.15% compared to Vulcan Materials CO (VMC) at 0.58%.
Which is safer for dividend income, NUE or VMC?
Nucor Corp's dividend safety is rated "Safe" while Vulcan Materials CO is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. The payout ratio of 23% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in NUE vs VMC generate?
A $10,000 investment in NUE generates approximately $115/year in dividends, while the same amount in VMC generates about $58/year.
Is NUE or VMC a Dividend Aristocrat?
Nucor Corp is a Dividend Contender with 16 consecutive years of increases. Vulcan Materials CO does not currently qualify for aristocrat status.
Which has a lower payout ratio, NUE or VMC?
Vulcan Materials CO has a lower payout ratio of 23% compared to Nucor Corp's 29%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
NUE vs VMC: which is better for retirement income?
It depends on your priorities. NUE for current income, VMC for safety. Many retirement investors hold both for diversification.
NUE Dividend Analysis | VMC Dividend Analysis | All Comparisons | Comparison Tool