June 24, 2026 a 07:31 am

VMC: Dividend Analysis - Vulcan Materials Company

Overview 📊

Vulcan Materials Company operates within the Construction & Materials sector, offering a reliable dividend yield of 0.77%. With a current dividend per share of 1.97 USD, the company demonstrates 42 years of steadfast dividend payments, highlighting resilience with no recent cuts or suspensions.

Metric	Value
Sector	Construction & Materials
Dividend yield	0.77 %
Current dividend per share	1.97 USD
Dividend history	42 years
Last cut or suspension	None

Dividend History 📈

The extensive dividend history of Vulcan Materials Company underlines its commitment to shareholders. Stability in dividend payments fosters investor confidence, a vital aspect for long-term investment appeal.

Year	Dividend Per Share (USD)
2026	1.04
2025	1.96
2024	1.84
2023	1.72
2022	1.6

Dividend Growth 🗣️

Vulcan Materials Company's dividend growth is a testament to its sustainable profitability strategy. Dividend growth is a crucial factor for investors seeking capital appreciation alongside income generation.

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, indicating the company's prudent financial management.

Payout Ratio ✅

Payout ratios are critical in understanding a company's ability to sustain dividends. A lower payout ratio suggests room for reinvestment while maintaining shareholder returns.

Key Figure	Ratio
EPS-based	23.25 %
Free cash flow-based	22.89 %

With an EPS-based payout ratio of 23.25% and a free cash flow-based ratio of 22.89%, Vulcan maintains a conservative approach, highlighting its potential for future growth and dividend safety.

Cashflow & Capital Efficiency 💼

Understanding cash flow yields and capital efficiency helps in evaluating the firm’s potential for sustainable payouts and growth investments.

Year	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 figures indicate sound capital efficiency, with a consistent free cash flow yield supporting potential for growth and stable dividend payouts.

Balance Sheet & Leverage Analysis ⚠️

An examination of the balance sheet and leverage ratios provides insights into financial stability and the company's capacity for debt management.

Year	2025	2024	2023
Debt-to-Equity	0.63	0.71	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	0	0	3.17
Quick Ratio	1.97	1.28	2.39

Vulcan's debt-related ratios reflect a solid leverage position, with a manageable level of debt relative to equity and assets, supporting its financial endurance and resilience to economic fluctuations.

Fundamental Strength & Profitability 📉

Profitability ratios provide an overview of a company's efficiency in generating profit from its operations and capital.

Year	2025	2024	2023
Return on Equity	12.68%	11.23%	12.47%
Return on Assets	6.47%	5.33%	6.42%
Net Margin	13.63%	12.29%	11.99%
EBIT Margin	23.07%	18.38%	18.52%

The robust return on equity and assets emphasizes Vulcan's capability in efficiently employing its capital to generate returns, contributing to its long-term financial viability.

Price Development 📷

Dividend Scoring System ⚖️

Criteria	Rating	Score
Dividend yield	2
Dividend Stability	5
Dividend growth	4
Payout ratio	5
Financial stability	4
Dividend continuity	5
Cashflow Coverage	4
Balance Sheet Quality	4

Rating ⭐

Vulcan Materials Company showcases a formidable foundation in its dividend structure, underpinned by a solid history, prudent payout ratios, and strategic financial management. While the dividend yield is modest, the reliability and growth potential fortify confidence for long-term investors seeking stability with gradual appreciation.