AFL vs PPG: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and Ppg Industries Inc (PPG) from Materials offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — AFL at 2.11% and PPG at 2.15%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus PPG's 5.3%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | PPG |
|---|
| Dividend Yield | 2.11% | 2.15% |
| Annual Dividend | $2.44 | $2.78 |
| 5-Year CAGR | 15.1% | 5.3% |
| Payout Ratio | 34% | 40% |
| Consecutive Years | 41 | 42 |
| Price | $115.04 | $131.33 |
Yield Comparison
Ppg Industries Inc (PPG) currently yields 2.15%, which is solid for the broader market. Aflac Inc (AFL) yields a nearly identical 2.11%. In dollar terms, PPG pays $2.78/share annually versus AFL's $2.44/share.
Dividend Growth
Over the past five years, AFL has grown its dividend at a 15.1% CAGR compared to PPG's 5.3%. AFL: Dividend growth is accelerating — the 3-year CAGR of 35.7% exceeds the 5-year rate of 15.1% and the 10-year rate of 15.7%. PPG: Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.3% and the 10-year rate of 6.6%.
Dividend Safety
AFL's dividend safety is rated "Safe." The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x. PPG's dividend safety is rated "Safe." The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x. AFL's payout ratio of 34% is more conservative than PPG's 40%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PPG generates approximately $215/year in dividend income, compared to $211/year from AFL — a difference of $4/year. At $100,000, that gap widens to $40/year.
Verdict
- Best for growth: AFL
- Best for safety: AFL
Frequently Asked Questions
Which has a higher dividend yield, AFL or PPG?
Ppg Industries Inc (PPG) has a higher dividend yield of 2.15% compared to Aflac Inc (AFL) at 2.11%.
Is AFL or PPG a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to Ppg Industries Inc's 5.3%.
Which is safer for dividend income, AFL or PPG?
Aflac Inc's dividend safety is rated "Safe" while Ppg Industries Inc is rated "Safe." The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x. The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x.
How much income does $10,000 in AFL vs PPG generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in PPG generates about $215/year.
Is AFL or PPG a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and Ppg Industries Inc is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, AFL or PPG?
Aflac Inc has a lower payout ratio of 34% compared to Ppg Industries Inc's 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs PPG: which is better for retirement income?
It depends on your priorities. AFL for dividend growth, AFL for safety. Many retirement investors hold both for diversification.
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