GPC vs PPG: Dividend Yield, Growth & Safety Comparison
Genuine Parts Co (GPC) from Consumer Discretionary and Ppg Industries Inc (PPG) from Materials offer different dividend profiles for income-focused portfolios. GPC edges ahead on yield at 2.79% versus PPG's 2.15%. Both stocks show similar dividend growth rates, each around 6.0% over the past five years. PPG holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | GPC | PPG |
|---|
| Dividend Yield | 2.79% | 2.15% |
| Annual Dividend | $4.09 | $2.78 |
| 5-Year CAGR | 6.0% | 5.3% |
| Payout Ratio | 70% | 40% |
| Consecutive Years | 39 | 42 |
| Price | $147.18 | $131.33 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.64% more than Ppg Industries Inc (PPG), which yields 2.15%. In dollar terms, GPC pays $4.09/share annually versus PPG's $2.78/share.
Dividend Growth
Over the past five years, GPC has grown its dividend at a 6.0% CAGR compared to PPG's 5.3%. GPC: Dividend growth is slowing — the 3-year CAGR of 4.1% trails the 5-year rate of 6.0% and the 10-year rate of 5.1%. 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
GPC's dividend safety is rated "Moderate." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. 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 GPC's 70%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in GPC generates approximately $279/year in dividend income, compared to $215/year from PPG — a difference of $64/year. At $100,000, that gap widens to $640/year.
Verdict
- Best for income: GPC
- Best for growth: GPC
- Best for safety: PPG
Frequently Asked Questions
Which has a higher dividend yield, GPC or PPG?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Ppg Industries Inc (PPG) at 2.15%.
Is GPC or PPG a better dividend growth stock?
Genuine Parts Co has the stronger dividend growth with a 5-year CAGR of 6.0%, compared to Ppg Industries Inc's 5.3%.
Which is safer for dividend income, GPC or PPG?
Genuine Parts Co's dividend safety is rated "Moderate" while Ppg Industries Inc is rated "Safe." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. 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 GPC vs PPG generate?
A $10,000 investment in GPC generates approximately $279/year in dividends, while the same amount in PPG generates about $215/year.
Is GPC or PPG a Dividend Aristocrat?
Genuine Parts Co is a Dividend Aristocrat (39 years) and Ppg Industries Inc is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, GPC or PPG?
Ppg Industries Inc has a lower payout ratio of 40% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GPC vs PPG: which is better for retirement income?
It depends on your priorities. GPC for current income, GPC for dividend growth, PPG for safety. Many retirement investors hold both for diversification.
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