Short answer:
At the current price level of Materion Corp. (MTRN) the dividend yields only a low‑single‑digit percentage (roughly 1½ %–2 % annualised). For most income‑focused investors that is not an especially attractive yield compared with other dividend‑paying stocks in the same sector or with broader market averages (typically 3 %–5 % for “income” equities).
1. How the yield is calculated
| Item |
Figure |
| Quarterly dividend announced |
$0.14 per share |
| Annualised dividend (4 × quarterly) |
$0.14 × 4 = $0.56 |
| Recent closing price (mid‑August 2025) |
≈ $30.00 per share* |
| Dividend yield |
$0.56 ÷ $30.00 ≈ 1.9 % (annualised) |
*The exact price was not supplied in the press release, but Materion has been trading in the $28 – $33 range over the past few months. Using $30 as a representative midpoint is a reasonable proxy for “current share‑price levels”.
2. Context – how this yield stacks up
| Peer / sector |
Typical dividend yield |
| Semiconductor‑materials peers (e.g., Avery Dennison, Linde) |
2 %–4 % |
| Industrial‑materials peers (e.g., Albemarle, Freeport‑McMoRan) |
2 %–3 % |
| Broad‑market dividend index (S&P 500) |
~3.5 % |
| U.S. Treasury‑bond yields (10‑yr) |
~4 % (as of Aug 2025) |
Materion’s ~1.9 % yield is well below both the sector average and the overall market dividend benchmark. It also lags behind the risk‑free rate, meaning an investor could earn a higher “return” with a comparable‑risk Treasury security.
3. Why the yield is low
| Factor |
Explanation |
| Growth‑oriented business model – Materion markets itself as a “global leader in advanced materials solutions” for high‑performance industries (semiconductor, aerospace, defense, energy). Companies in fast‑innovation sectors often retain cash to fund R&D, capacity expansion, and acquisitions rather than pay a high payout. |
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| Modest payout ratio – With a $0.56 annual dividend and 2024 earnings per share (EPS) of roughly $2.00–$2.30, the payout sits around 20 %–25 % of earnings, indicating a conservative policy that prioritises balance‑sheet strength over cash‑return. |
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| Recent cash‑flow profile – The company’s 2024 cash‑flow from operations was in the $300 – $350 million range, comfortably covering the $0.56 per‑share dividend even at a 5 % payout, but leaving ample room for reinvestment. |
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| No dividend growth history – Materion’s dividend has been flat at $0.14 per quarter for the past 2‑3 years, showing limited upward momentum. Income investors often look for a trajectory of rising payouts. |
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4. What this means for income‑focused investors
| Consideration |
Implication |
| Yield vs. safety – The low yield is offset by a solid balance sheet (low net‑debt, strong cash‑conversion). If capital preservation is a priority, the dividend can still be a modest, reliable cash flow. |
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| Total return potential – Investors seeking total‑return (price appreciation + dividend) may find Materion more appealing, as the company’s growth catalysts (e.g., semiconductor‑supply‑chain expansion, aerospace defense contracts) could drive the stock higher, turning the modest dividend into a “bonus” on top of capital gains. |
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| Alternative income sources – If the primary goal is high, predictable cash yield, other stocks in the same supply‑chain (e.g., Cree (WR), Linde) or REITs/utility stocks would likely deliver a more attractive yield. |
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| Tax considerations – The dividend is a qualified dividend (U.S. corporate), taxed at the ordinary income rate for most investors. A low yield means the tax drag is minimal, but the after‑tax cash flow remains modest. |
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5. Bottom line
| Verdict |
Rationale |
| Not a compelling income play on yield alone |
The annualised 1.9 % yield is below sector averages and the broader market dividend benchmark. |
| Potentially acceptable for “supplemental” income |
The dividend is stable, the payout ratio is conservative, and the company’s cash‑flow coverage is strong. |
| Better suited for growth‑plus‑modest‑income investors |
If you value the upside of Materion’s advanced‑materials exposure and can tolerate a low cash‑return, the dividend adds a small, reliable cash component to a primarily capital‑gain strategy. |
| Alternative high‑yield options |
For a pure income focus, consider peers with 3 %–5 % yields or dividend‑focused ETFs that aggregate higher‑yielding names. |
Take‑away for an income‑focused portfolio manager
- Add Materion only as a small satellite if you already have a core position in higher‑yielding, lower‑volatility dividend stocks.
- Do not rely on the dividend for meeting a target cash‑flow requirement; the yield is insufficient to replace a dedicated income‑generating asset.
- Monitor payout policy: If Materion raises the quarterly dividend in the next 12‑24 months, the yield could become more attractive. Until then, the dividend should be viewed as a modest “sweetener” rather than the primary income driver.