DOW vs PPG: Dividend Yield, Growth & Safety Comparison
Dow Inc. (DOW) and Ppg Industries Inc (PPG) are both in the Materials sector, making them natural rivals for dividend investors. DOW offers a significantly higher 6.25% yield compared to PPG's 2.15%, a gap of 4.10%. For dividend growth, PPG leads with a 5-year CAGR of 5.3% versus DOW's -6.9%. Both stocks carry a "Safe" dividend safety rating. PPG is a Dividend Aristocrat with 42 years of consecutive increases.
Key Metrics Comparison
| Metric | DOW | PPG |
|---|
| Dividend Yield | 6.25% | 2.15% |
| Annual Dividend | $2.10 | $2.78 |
| 5-Year CAGR | -6.9% | 5.3% |
| Payout Ratio | 7% | 40% |
| Consecutive Years | 0 | 42 |
| Price | $32.60 | $131.33 |
Yield Comparison
Dow Inc. (DOW) currently yields 6.25%, which is attractive for the broader market. That's 4.10% more than Ppg Industries Inc (PPG), which yields 2.15%. In dollar terms, DOW pays $2.10/share annually versus PPG's $2.78/share.
Dividend Growth
Over the past five years, PPG has grown its dividend at a 5.3% CAGR compared to DOW's -6.9%. DOW: Dividend growth is slowing — the 3-year CAGR of -13.4% trails the 5-year rate of -6.9% and the 10-year rate of 0.0%. 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
DOW's dividend safety is rated "Safe." The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x. 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. DOW's payout ratio of 7% is more conservative than PPG's 40%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in DOW generates approximately $625/year in dividend income, compared to $215/year from PPG — a difference of $410/year. At $100,000, that gap widens to $4100/year.
Verdict
- Best for income: DOW
- Best for growth: PPG
- Best for safety: DOW
Frequently Asked Questions
Which has a higher dividend yield, DOW or PPG?
Dow Inc. (DOW) has a higher dividend yield of 6.25% compared to Ppg Industries Inc (PPG) at 2.15%.
Is DOW 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 Dow Inc.'s -6.9%.
Which is safer for dividend income, DOW or PPG?
Dow Inc.'s dividend safety is rated "Safe" while Ppg Industries Inc is rated "Safe." The payout ratio of 7% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -1.8x. 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 DOW vs PPG generate?
A $10,000 investment in DOW generates approximately $625/year in dividends, while the same amount in PPG generates about $215/year.
Is DOW or PPG a Dividend Aristocrat?
Ppg Industries Inc is a Dividend Aristocrat with 42 consecutive years of increases. Dow Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, DOW or PPG?
Dow Inc. has a lower payout ratio of 7% compared to Ppg Industries Inc's 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOW vs PPG: which is better for retirement income?
It depends on your priorities. DOW for current income, PPG for dividend growth, DOW for safety. Many retirement investors hold both for diversification.
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