October 18, 2025 a 07:31 am
MLM: Dividend Analysis - Martin Marietta Materials, Inc.
Martin Marietta Materials, Inc. presents a unique dividend profile characterized by a modest yield with historical stability. The company has successfully maintained a dividend payout for over 32 years, showcasing resilience and dedication to return value to shareholders. However, with a below-average dividend yield, the focus remains on the steady growth and sustainability of its distributions.
📊 Overview
Martin Marietta Materials, Inc. operates within the Materials sector and has a current dividend yield of 0.52%. The company offers a present dividend of 3.078 USD per share and has a dividend payment history spanning 32 years, with no recent cuts or suspensions.
| Sector | Dividend Yield % | Current Dividend Per Share (USD) | Dividend History (Years) | Last Cut or Suspension |
|---|---|---|---|---|
| Materials | 0.52 | 3.08 | 32 | None |
🗣️ Dividend History
The dividend history of Martin Marietta Materials, Inc. is vital as it demonstrates the ability to sustain and grow investor returns over time. Securing a reliable dividend is seen as a strong commitment by the company to its shareholders.
| Year | Dividend Per Share |
|---|---|
| 2025 | 2.41 |
| 2024 | 3.06 |
| 2023 | 2.80 |
| 2022 | 2.54 |
| 2021 | 2.36 |
📈 Dividend Growth
Monitoring dividend growth is imperative for evaluating the long-term viability and attractiveness of a dividend stock. Martin Marietta Materials, Inc. displays remarkable consistency in increasing dividends, supported by growth rates of 9.04% over 3 years and 8.24% over 5 years.
| Time | Growth |
|---|---|
| 3 years | 9.04 % |
| 5 years | 8.24 % |
The average dividend growth is 8.24% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio is a critical indicator of dividend sustainability. Martin Marietta Materials, Inc. maintains a conservative payout policy with EPS-based and FCF-based payout ratios of 16.94% and 19.28%, respectively. These figures suggest ample room for future dividend growth, ensuring steady distributions even in challenging market conditions.
| Key Figure | Ratio |
|---|---|
| EPS-based | 16.94 % |
| Free cash flow-based | 19.28 % |
✅ Cashflow & Capital Efficiency
Evaluating the cash flow dynamics and capital efficiency offers insights into the company's ability to cover dividends and reinvest for growth. Strong cash flows ensure dividend stability amid financial headwinds.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 1.90 % | 2.84 % | 2.42 % |
| Earnings Yield | 6.29 % | 3.79 % | 4.12 % |
| CAPEX to Operating Cash Flow | 58.60 % | 42.54 % | 48.64 % |
| Stock-based Compensation to Revenue | 0.89 % | 0.74 % | 0.70 % |
| Free Cash Flow / Operating Cash Flow Ratio | 41.40 % | 57.46 % | 51.36 % |
The metrics indicate a healthy balance between maintaining operational capital and rewarding shareholders with dividends.
⚠️ Balance Sheet & Leverage Analysis
A thorough evaluation of leverage ratios informs about the company's financial robustness in managing debts and obligations. These ratios highlight Martin Marietta Materials' strategic maneuvers in optimizing capital structure for sustained growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.61 | 0.59 | 0.76 |
| Debt-to-Assets | 0.32 | 0.31 | 0.36 |
| Debt-to-Capital | 0.38 | 0.37 | 0.43 |
| Net Debt to EBITDA | 1.54 | 1.59 | 2.87 |
| Current Ratio | N/A | 3.35 | 1.99 |
| Quick Ratio | 1.40 | 2.50 | 1.39 |
| Financial Leverage | 1.92 | 1.88 | 2.09 |
The leverage and asset management ratios confirm the company's capacity to handle long-term obligations while preserving equity value.
✅ Fundamental Strength & Profitability
Consistently high profitability margins and returns on capital are crucial indicators of strategic execution and financial health, assuring stable earnings for dividend distributions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 21.10 % | 14.55 % | 12.09 % |
| Return on Assets | 10.98 % | 7.73 % | 5.78 % |
| Net Profit Margin | 30.52 % | 17.25 % | 14.07 % |
| EBIT Margin | 42.30 % | 24.47 % | 20.45 % |
| EBITDA Margin | 51.07 % | 32.03 % | 28.66 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
These profitability metrics suggest Martin Marietta Materials benefits from efficient operations contributing to an enhanced ability to sustain payouts.
📈 Price Development
✅ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 33/40
✅ Rating
Martin Marietta Materials, Inc. provides a stable and reliable dividend profile, albeit with a relatively low yield. The impressive duration of distributions, along with manageable payout ratios, indicate a strong foundation for dividend sustainability. This makes the company a solid choice for investors seeking a dependable dividend stream with moderate growth potential.