April 18, 2026 a 07:46 am

ALB: Dividend Analysis - Albemarle Corporation

📊 Overview

The Overview of Albemarle Corporation's dividend profile presents a mixed yet intriguing picture. The company operates within a certain sector which shapes its financial strategies and outlook.

Criteria	Details
Sector	Chemicals
Dividend yield	1.02 %
Current dividend per share	3.04 USD
Dividend history	33 years
Last cut or suspension	None

🗣️ Dividend History

The consistent dividend history spanning over three decades highlights the company’s commitment to returning value to shareholders. Such a track record is instrumental in building investor confidence and projecting long-term stability.

Year	Dividend per Share (USD)
2026	0.405
2025	1.620
2024	1.610
2023	1.600
2022	1.580

📈 Dividend Growth

Evaluating dividend growth is crucial for assessing potential future income. While Albemarle Corporation's growth rates are modest, they signal sustained commitment to financial discipline and investor returns.

Time	Growth
3 years	0.84 %
5 years	1.02 %

The average dividend growth is 1.02% over 5 years. This shows moderate but steady dividend growth.

💹 Payout Ratio

Analysis of payout ratios helps gauge the sustainability of dividends. Here, the EPS-based payout ratio is notably negative due to current earnings challenges.

Key figure	Ratio
EPS-based	-69.97 %
Free cash flow-based	51.66 %

The EPS payout ratio of -69.97% suggests greater financial pressure, while the FCF payout ratio remains moderate at 51.66%, underscoring cash-based dividend stability.

🔍 Cashflow & Capital Efficiency

Albemarle's cash flow metrics indicate mixed results. A positive Free Cash Flow Yield reflects efficient capital use, although earnings yields suggest some operational challenges. Below is the data analysis:

Year	Free Cash Flow Yield	Earnings Yield	CAPEX/OCF	Stock Compensation/Revenue	FCF/OCF Ratio
2025	4.16%	-3.07%	46.0%	0.78%	54.0%
2024	-9.81%	-11.66%	244.31%	0.60%	-144.31%
2023	-4.88%	9.28%	162.41%	0.38%	-62.41%

The apparent volatility underscores a focus on long-term operational adjustments necessary to enhance capital efficiency.

💳 Balance Sheet & Leverage Analysis

A closer look at the balance sheet reveals careful leverage use, with debt ratios remaining within acceptable limits. Strong liquidity ratios further emphasize financial robustness.

Year	Debt/Equity	Debt/Assets	Debt/Capital	Net Debt/EBITDA	Current Ratio	Quick Ratio	Financial Leverage
2025	0.35	0.20	0.26	2.23	2.23	1.57	1.72
2024	0.36	0.22	0.27	-53.77	1.95	1.19	1.67
2023	0.45	0.23	0.31	5.05	1.47	0.86	1.94

Stability and prudent debt management underscore Albemarle’s resilience against financial headwinds.

💼 Fundamental Strength & Profitability

The profitability metrics, though recently under pressure, showcase Albemarle's potential rebound. Operational enhancements are on the horizon, aiming for stronger profitability and R&D alignment with industry standards.

Year	ROE	ROA	Margins: Net	EBIT	EBITDA	Gross	R&D to Revenue
2025	-5.36%	-3.11%	-9.93%	1.82%	14.67%	13.06%	1.00%
2024	-11.84%	-7.10%	-21.93%	-11.83%	-0.84%	1.12%	1.61%
2023	16.72%	8.61%	16.36%	2.51%	6.98%	12.49%	0.89%

With strategic pivots, Albemarle is poised for more robust profitability metrics reflective of its core strengths.

📉 Price Development

🔢 Dividend Scoring System

Category	Score (out of 5)
Dividend yield	2
Dividend Stability	4
Dividend growth	3
Payout ratio	3
Financial stability	3
Dividend continuity	4
Cashflow Coverage	2
Balance Sheet Quality	3

✅ Rating

Overall, Albemarle Corporation is a sound pick for investors seeking stable yet moderate dividend growth. Though current earnings are under pressure, the company's commitment to dividends and prudent financial management serves as a stable backbone for potential future recovery and growth.