SHW vs VMC: Dividend Yield, Growth & Safety Comparison
Sherwin Williams Co (SHW) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — SHW at 0.87% and VMC at 0.58%. Both stocks carry a "Safe" dividend safety rating. SHW is a Dividend Aristocrat with 40 years of consecutive increases.
Key Metrics Comparison
| Metric | SHW | VMC |
|---|
| Dividend Yield | 0.87% | 0.58% |
| Annual Dividend | $3.16 | $1.96 |
| 5-Year CAGR | 9.5% | N/A |
| Payout Ratio | 31% | 23% |
| Consecutive Years | 40 | N/A |
| Price | $368.50 | $326.35 |
Yield Comparison
Sherwin Williams Co (SHW) currently yields 0.87%, which is very low for the broader market. That's 0.28% more than Vulcan Materials CO (VMC), which yields 0.58%. In dollar terms, SHW pays $3.16/share annually versus VMC's $1.96/share.
Dividend Growth
SHW has a 5-year dividend CAGR of 9.5%. Growth data is not available for VMC. 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
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. 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 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 $58/year from VMC — a difference of $29/year. At $100,000, that gap widens to $290/year.
Verdict
- Best for income: SHW
- Best for safety: VMC
Frequently Asked Questions
Which has a higher dividend yield, SHW or VMC?
Sherwin Williams Co (SHW) has a higher dividend yield of 0.87% compared to Vulcan Materials CO (VMC) at 0.58%.
Which is safer for dividend income, SHW or VMC?
Sherwin Williams Co's dividend safety is rated "Safe" while Vulcan Materials CO is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. The payout ratio of 23% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in SHW vs VMC generate?
A $10,000 investment in SHW generates approximately $87/year in dividends, while the same amount in VMC generates about $58/year.
Is SHW or VMC a Dividend Aristocrat?
Sherwin Williams Co is a Dividend Aristocrat with 40 consecutive years of increases. Vulcan Materials CO does not currently qualify for aristocrat status.
Which has a lower payout ratio, SHW or VMC?
Vulcan Materials CO has a lower payout ratio of 23% compared to Sherwin Williams Co's 31%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
SHW vs VMC: which is better for retirement income?
It depends on your priorities. SHW for current income, VMC for safety. Many retirement investors hold both for diversification.
SHW Dividend Analysis | VMC Dividend Analysis | All Comparisons | Comparison Tool