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A Look at Albemarle’s Dividend Yield Curve since 2011

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Feb. 28 2017, Updated 12:06 p.m. ET

Albemarle’s dividend yield

A dividend yield is a measure of a company’s annual dividend per share relative to its price per share. It indicates how much cash an investor is getting for every dollar invested in the company’s equity. A high dividend yield is a good sign since it provides investors with a stable income.

On February 24, 2017, Albemarle stock closed at $92.93. With ALB’s dividend for fiscal 2017 expected to be $1.28, its current dividend yield is ~1.4%.

Its peers FMC (FMC), W.R. Grace (GRA), and Sociedad Química y Minera de Chile (SQM) have current dividend yields of 1.1%,1.2%, and 2.9%, respectively.

In the past six years, Albemarle’s dividend yield has been 1.3%–2.1%. However, in fiscal 2016, the dividend yield fell, primarily due to a sharp increase in its stock price, which resulted in the dividend yield falling to 1.4%. Currently, it looks like 2017 will follow the 2016 trend.

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Dividend payout

Dividend payout can be calculated by dividing annual dividend per share by annual EPS (earnings per share), expressed in percentage. It tells you what percentage of earnings the company is paying out as a dividend.

Albemarle’s dividend payout has been fluctuating from 15.0%–65.0% since 2011. Its dividend payout ratio was 15.0% in 2011 and is expected to be 34.0% in 2016.

You can indirectly hold Albemarle by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which has invested 4.0% of its holdings in Albemarle as of February 24, 2017.

In the next part, we’ll look at the latest analyst ratings for Albemarle.

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