C vs PNC: Dividend Yield, Growth & Safety Comparison
Citigroup Inc (C) and Pnc Financial Services Group, Inc. (PNC) are both in the Financials sector, making them natural rivals for dividend investors. PNC edges ahead on yield at 2.75% versus C's 1.90%. For dividend growth, PNC leads with a 5-year CAGR of 16.0% versus C's 11.0%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | C | PNC |
|---|
| Dividend Yield | 1.90% | 2.75% |
| Annual Dividend | $2.32 | $6.60 |
| 5-Year CAGR | 11.0% | 16.0% |
| Payout Ratio | 33% | 40% |
| Consecutive Years | 0 | 0 |
| Price | $110.67 | $229.30 |
Yield Comparison
Pnc Financial Services Group, Inc. (PNC) currently yields 2.75%, which is solid for the broader market. That's 0.85% more than Citigroup Inc (C), which yields 1.90%. In dollar terms, PNC pays $6.60/share annually versus C's $2.32/share.
Dividend Growth
Over the past five years, PNC has grown its dividend at a 16.0% CAGR compared to C's 11.0%. C: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 11.0% and the 10-year rate of 22.6%. PNC: Dividend growth is accelerating — the 3-year CAGR of 19.8% exceeds the 5-year rate of 16.0% and the 10-year rate of 17.0%.
Dividend Safety
C's dividend safety is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. PNC'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. C's payout ratio of 33% is more conservative than PNC's 40%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PNC generates approximately $275/year in dividend income, compared to $190/year from C — a difference of $85/year. At $100,000, that gap widens to $850/year.
Verdict
- Best for income: PNC
- Best for growth: PNC
- Best for safety: C
Frequently Asked Questions
Which has a higher dividend yield, C or PNC?
Pnc Financial Services Group, Inc. (PNC) has a higher dividend yield of 2.75% compared to Citigroup Inc (C) at 1.90%.
Is C or PNC a better dividend growth stock?
Pnc Financial Services Group, Inc. has the stronger dividend growth with a 5-year CAGR of 16.0%, compared to Citigroup Inc's 11.0%.
Which is safer for dividend income, C or PNC?
Citigroup Inc's dividend safety is rated "Safe" while Pnc Financial Services Group, Inc. is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. 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 C vs PNC generate?
A $10,000 investment in C generates approximately $190/year in dividends, while the same amount in PNC generates about $275/year.
Which has a lower payout ratio, C or PNC?
Citigroup Inc has a lower payout ratio of 33% compared to Pnc Financial Services Group, Inc.'s 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
C vs PNC: which is better for retirement income?
It depends on your priorities. PNC for current income, PNC for dividend growth, C for safety. Many retirement investors hold both for diversification.
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