JNJ vs PPG: Dividend Comparison
Dividend data as of
Johnson & Johnson (JNJ) from Health Care and Ppg Industries Inc (PPG) from Materials offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — JNJ at 2.16% and PPG at 2.15%. Both stocks show similar dividend growth rates, each around 5.2% over the past five years. Both stocks carry a "Safe" dividend safety rating. JNJ is a Dividend King while PPG is a Dividend Aristocrat.
Verdict
Yield Analysis
JNJ yields 0.00% more than PPG. In dollar terms, JNJ pays $5.14/share vs PPG's $2.78/share annually.
Dividend Growth
JNJ: Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.2% and the 10-year rate of 5.6%.
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
JNJ: The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
PPG: The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in JNJ vs PPG today?
At $243.53 per share, $10,000 buys about 41.1 shares of Johnson & Johnson (JNJ). Each share pays $5.14 per year in dividends, so the position starts out generating roughly $211 per year — about $18 a month.
At $131.33 per share, $10,000 buys about 76.1 shares of Ppg Industries Inc (PPG). Each share pays $2.78 per year in dividends, so the position starts out generating roughly $212 per year — about $18 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of JNJ or PPG income look like in 10 years?
Johnson & Johnson (JNJ) has raised its dividend about 5.2% a year over the past five years. If that pace held, the $216 per year that $10,000 generates today at the current 2.16% yield would reach $359 per year by 2036 — a 3.6% yield on the original cost.
Ppg Industries Inc (PPG) has raised its dividend about 5.3% a year over the past five years. If that pace held, the $215 per year that $10,000 generates today at the current 2.15% yield would reach $361 per year by 2036 — a 3.6% yield on the original cost.
On those trailing rates, PPG pays more in 2036: $361 versus $359 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can JNJ and PPG afford their dividends?
Johnson & Johnson (JNJ) earns $11.03 per share against $5.14 paid out in dividends — 2.1x coverage (a 47% payout ratio).
Ppg Industries Inc (PPG) earns $6.92 per share against $2.78 paid out in dividends — 2.5x coverage (a 40% payout ratio).
PPG's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for JNJ if earnings weaken.
Which fits an early-retirement income portfolio better, JNJ or PPG?
For income you need right now, Johnson & Johnson (JNJ) leads: $100,000 invested today pays about $180 a month at the current 2.16% yield, versus $179 a month from Ppg Industries Inc (PPG) at 2.15%.
On consistency: JNJ has raised its dividend 63 consecutive years; PPG has raised its dividend 42 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $445/yr in JNJ vs $447/yr in PPG by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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