June 05, 2026 a 12:46 pm
VMC: Dividend Analysis - Vulcan Materials Company
Vulcan Materials Company (VMC) has demonstrated a consistent and resilient dividend history, highlighted by over four decades of uninterrupted payments. Its current dividend yield may appear modest, yet the steady growth underscores a conservative but reliable income source. The company's disciplined approach towards dividend payouts reflects its solid financial foundations and strategic focus on sustainability.
📊 Overview
Vulcan Materials is a leading supplier in the materials sector, characterized by a reliable dividend policy. This sector is known for its stable demand and robust cash flows, which is reflected in its consistent dividend history.
| Metric | Details |
|---|---|
| Sector | Materials |
| Dividend Yield | 0.77% |
| Current Dividend per Share | 1.97 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
📈 Dividend History
Having a long history of continuous dividend payments is crucial for income-focused investors as it represents financial stability and commitment to shareholder returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.04 |
| 2025 | 1.96 |
| 2024 | 1.84 |
| 2023 | 1.72 |
| 2022 | 1.60 |
📈 Dividend Growth
A strong record of dividend growth is a key indicator of a company’s financial health and prioritization of shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 6.99% |
| 5 years | 7.58% |
The average dividend growth is 7.58% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio indicates the proportion of earnings paid out as dividends, highlighting sustainability of the dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.25% |
| Free Cash Flow-based | 22.89% |
The EPS payout ratio of 23.25% and FCF payout ratio of 22.89% indicate a conservative approach, implying sufficient room for future growth.
📊 Cashflow & Capital Efficiency
Assessing the cash flow and capital efficiency of a company provides insight into its ability to fund operations and support dividend payments.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.02% | 2.37% | 2.20% |
| Earnings Yield | 2.87% | 2.68% | 3.09% |
| CAPEX to Operating Cash Flow | 37.38% | 42.81% | 56.78% |
| Stock-based Compensation to Revenue | 0.80% | 0.72% | 0.81% |
| Free Cash Flow / Operating Cash Flow Ratio | 62.62% | 57.18% | 43.22% |
The relatively stable cash flow metrics with a strong free cash flow yield reflect a solid foundation, allowing for sustained dividend payouts and investments in growth.
📊 Balance Sheet & Leverage Analysis
Analyzing the balance sheet and leverage ratios provides an understanding of financial stability and potential risks.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.63 | 0.72 | 0.59 |
| Debt-to-Assets | 0.32 | 0.34 | 0.30 |
| Debt-to-Capital | 0.39 | 0.42 | 0.37 |
| Net Debt to EBITDA | 2.03 | 2.66 | 1.69 |
| Current Ratio | 2.59 | 1.83 | 3.16 |
| Quick Ratio | 1.97 | 1.28 | 2.39 |
| Financial Leverage | 1.96 | 2.11 | 1.94 |
Vulcan Materials showcases a balanced approach to leverage, maintaining a healthy debt-to-equity ratio which supports its dividend policy.
📊 Fundamental Strength & Profitability
Understanding a company’s profitability and returns highlights its capability to generate earnings and fuel dividend growth.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 12.68% | 11.23% | 12.47% |
| Return on Assets | 6.47% | 5.33% | 6.42% |
| Net Profit Margin | 13.63% | 12.29% | 11.99% |
| EBIT Margin | 23.07% | 18.38% | 18.52% |
| EBITDA Margin | 32.37% | 26.70% | 26.27% |
| Gross Margin | 27.30% | 26.96% | 25.04% |
| Research & Development to Revenue | 0% | 0% | 0% |
The profitability metrics suggest a strong return structure, supporting ongoing revenue growth and emphasizing current dividend stability.
🔍 Price Development
🎯 Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Overall Score: 31/40
✅ Rating
Vulcan Materials Company presents a robust dividend profile backed by strong stability and growth prospects despite a modest yield. It is an attractive prospect for investors seeking a balance of income and growth with a reliable track of total shareholder return. The strong fundamental indicators support the continued confidence in its dividend policy, making it a prudent choice for conservative portfolios.
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