ALB vs PPG: Dividend Yield, Growth & Safety Comparison
Albemarle Corp (ALB) and Ppg Industries Inc (PPG) are both in the Materials sector, making them natural rivals for dividend investors. PPG offers a significantly higher 2.15% yield compared to ALB's 1.02%, a gap of 1.13%. For dividend growth, PPG leads with a 5-year CAGR of 5.3% versus ALB's 0.9%. Both stocks carry a "Safe" dividend safety rating. ALB is a Dividend Contender while PPG is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | ALB | PPG |
|---|
| Dividend Yield | 1.02% | 2.15% |
| Annual Dividend | $1.62 | $2.78 |
| 5-Year CAGR | 0.9% | 5.3% |
| Payout Ratio | 58% | 40% |
| Consecutive Years | 23 | 42 |
| Price | $166.33 | $131.33 |
Yield Comparison
Ppg Industries Inc (PPG) currently yields 2.15%, which is solid for the broader market. That's 1.13% more than Albemarle Corp (ALB), which yields 1.02%. In dollar terms, PPG pays $2.78/share annually versus ALB's $1.62/share.
Dividend Growth
Over the past five years, PPG has grown its dividend at a 5.3% CAGR compared to ALB's 0.9%. ALB: Dividend growth has been steady, with a 3-year CAGR of 0.6% and a 5-year CAGR of 0.9% (10-year: 3.2%). 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
ALB's dividend safety is rated "Safe." The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x. 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. PPG's payout ratio of 40% is more conservative than ALB's 58%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PPG generates approximately $215/year in dividend income, compared to $102/year from ALB — a difference of $113/year. At $100,000, that gap widens to $1130/year.
Verdict
- Best for income: PPG
- Best for growth: PPG
- Best for safety: PPG
Frequently Asked Questions
Which has a higher dividend yield, ALB or PPG?
Ppg Industries Inc (PPG) has a higher dividend yield of 2.15% compared to Albemarle Corp (ALB) at 1.02%.
Is ALB or PPG a better dividend growth stock?
Ppg Industries Inc has the stronger dividend growth with a 5-year CAGR of 5.3%, compared to Albemarle Corp's 0.9%.
Which is safer for dividend income, ALB or PPG?
Albemarle Corp's dividend safety is rated "Safe" while Ppg Industries Inc is rated "Safe." The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -3.5x. 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 ALB vs PPG generate?
A $10,000 investment in ALB generates approximately $102/year in dividends, while the same amount in PPG generates about $215/year.
Is ALB or PPG a Dividend Aristocrat?
Albemarle Corp is a Dividend Contender (23 years) and Ppg Industries Inc is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, ALB or PPG?
Ppg Industries Inc has a lower payout ratio of 40% compared to Albemarle Corp's 58%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ALB vs PPG: which is better for retirement income?
It depends on your priorities. PPG for current income, PPG for dividend growth, PPG for safety. Many retirement investors hold both for diversification.
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