LYB vs PPG: Dividend Comparison
Dividend data as of
LyondellBasell Industries N.V. (LYB) and Ppg Industries Inc (PPG) are both in the Materials sector, making them natural rivals for dividend investors. LYB offers a significantly higher 9.40% yield compared to PPG's 2.15%, a gap of 7.25%. Both stocks show similar dividend growth rates, each around 5.3% over the past five years. Both stocks carry a "Safe" dividend safety rating. PPG is a Dividend Aristocrat with 42 years of consecutive increases.
Verdict
Yield Analysis
LYB yields 7.25% more than PPG. In dollar terms, LYB pays $5.42/share vs PPG's $2.78/share annually.
Dividend Growth
LYB: Dividend growth has been steady, with a 3-year CAGR of 5.0% and a 5-year CAGR of 5.3% (10-year: 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
LYB: The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x.
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 LYB vs PPG today?
At $57.80 per share, $10,000 buys about 173.0 shares of LyondellBasell Industries N.V. (LYB). Each share pays $5.42 per year in dividends, so the position starts out generating roughly $938 per year — about $78 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.
LYB is the larger income stream from day one: $726 per year more on the same $10,000 invested.
What could $10,000 of LYB or PPG income look like in 10 years?
LyondellBasell Industries N.V. (LYB) has raised its dividend about 5.3% a year over the past five years. If that pace held, the $940 per year that $10,000 generates today at the current 9.40% yield would reach $1,569 per year by 2036 — a 15.7% 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, LYB pays more in 2036: $1,569 versus $361 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would PPG's dividend growth overtake LYB's higher yield?
It doesn't, on the trailing numbers. LyondellBasell Industries N.V. (LYB) yields more today (9.40% vs 2.15%) and has also grown its dividend at least as fast (5.3% vs 5.3% a year over five years). Unless PPG accelerates its raises or LYB stumbles, PPG never closes the income gap — LYB wins on both current income and growth.
Can LYB and PPG afford their dividends?
LyondellBasell Industries N.V. (LYB) pays out about 11% of its earnings as dividends, which implies roughly 8.7x earnings coverage.
Ppg Industries Inc (PPG) earns $6.92 per share against $2.78 paid out in dividends — 2.5x coverage (a 40% payout ratio).
LYB'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 PPG if earnings weaken.
Which fits an early-retirement income portfolio better, LYB or PPG?
For income you need right now, LyondellBasell Industries N.V. (LYB) leads: $100,000 invested today pays about $783 a month at the current 9.40% yield, versus $179 a month from Ppg Industries Inc (PPG) at 2.15%.
On consistency: LYB has raised its dividend 2 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 $3,854/yr in LYB 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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