JNJ vs PPG: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | JNJ | PPG |
|---|
| Dividend Yield | 2.16% | 2.15% |
| Annual Dividend | $5.14 | $2.78 |
| 5-Year CAGR | 5.2% | 5.3% |
| Payout Ratio | 47% | 40% |
| Consecutive Years | 63 | 42 |
| Price | $243.53 | $131.33 |
Yield Comparison
Johnson & Johnson (JNJ) currently yields 2.16%, which is solid for the broader market. Ppg Industries Inc (PPG) yields a nearly identical 2.15%. In dollar terms, JNJ pays $5.14/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 JNJ's 5.2%. 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's dividend safety is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. 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 JNJ's 47%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in JNJ generates approximately $216/year in dividend income, compared to $215/year from PPG — a difference of $1/year. At $100,000, that gap widens to $10/year.
Verdict
Frequently Asked Questions
Which has a higher dividend yield, JNJ or PPG?
Johnson & Johnson (JNJ) has a higher dividend yield of 2.16% compared to Ppg Industries Inc (PPG) at 2.15%.
Is JNJ 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 Johnson & Johnson's 5.2%.
Which is safer for dividend income, JNJ or PPG?
Johnson & Johnson's dividend safety is rated "Safe" while Ppg Industries Inc is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. 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 JNJ vs PPG generate?
A $10,000 investment in JNJ generates approximately $216/year in dividends, while the same amount in PPG generates about $215/year.
Is JNJ or PPG a Dividend Aristocrat?
Johnson & Johnson is a Dividend King (63 years) and Ppg Industries Inc is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, JNJ or PPG?
Ppg Industries Inc has a lower payout ratio of 40% compared to Johnson & Johnson's 47%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JNJ vs PPG: which is better for retirement income?
It depends on your priorities. PPG for safety. Many retirement investors hold both for diversification.
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