SHW vs VMC: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
SHW yields 0.28% more than VMC. In dollar terms, SHW pays $3.16/share vs VMC's $1.96/share annually.
Dividend Growth
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: The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
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 SHW vs VMC today?
At $368.50 per share, $10,000 buys about 27.1 shares of Sherwin Williams Co (SHW). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $86 per year — about $7 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.
SHW is the larger income stream from day one: $26 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.
Sherwin Williams Co (SHW) is the one with a measurable track record here — dividend raises of about 9.5% a year over the past five years. If a proven raise history matters to you, SHW wins that dimension by default until VMC builds one.
Can SHW and VMC afford their dividends?
Sherwin Williams Co (SHW) earns $10.28 per share against $3.16 paid out in dividends — 3.3x coverage (a 31% 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 SHW if earnings weaken.
Which fits an early-retirement income portfolio better, SHW or VMC?
For income you need right now, Sherwin Williams Co (SHW) leads: $100,000 invested today pays about $72 a month at the current 0.87% yield, versus $49 a month from Vulcan Materials CO (VMC) at 0.58%.
On consistency: SHW has raised its dividend 40 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 $234/yr in SHW 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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