LYB vs PPG: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | LYB | PPG |
|---|
| Dividend Yield | 9.40% | 2.15% |
| Annual Dividend | $5.42 | $2.78 |
| 5-Year CAGR | 5.3% | 5.3% |
| Payout Ratio | 11% | 40% |
| Consecutive Years | 2 | 42 |
| Price | $57.80 | $131.33 |
Yield Comparison
LyondellBasell Industries N.V. (LYB) currently yields 9.40%, which is high for the broader market. That's 7.25% more than Ppg Industries Inc (PPG), which yields 2.15%. In dollar terms, LYB pays $5.42/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 LYB's 5.3%. 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's dividend safety is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. 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. LYB's payout ratio of 11% is more conservative than PPG's 40%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LYB generates approximately $940/year in dividend income, compared to $215/year from PPG — a difference of $725/year. At $100,000, that gap widens to $7250/year.
Verdict
- Best for income: LYB
- Best for safety: LYB
Frequently Asked Questions
Which has a higher dividend yield, LYB or PPG?
LyondellBasell Industries N.V. (LYB) has a higher dividend yield of 9.40% compared to Ppg Industries Inc (PPG) at 2.15%.
Is LYB 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 LyondellBasell Industries N.V.'s 5.3%.
Which is safer for dividend income, LYB or PPG?
LyondellBasell Industries N.V.'s dividend safety is rated "Safe" while Ppg Industries Inc is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. 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 LYB vs PPG generate?
A $10,000 investment in LYB generates approximately $940/year in dividends, while the same amount in PPG generates about $215/year.
Is LYB or PPG a Dividend Aristocrat?
Ppg Industries Inc is a Dividend Aristocrat with 42 consecutive years of increases. LyondellBasell Industries N.V. does not currently qualify for aristocrat status.
Which has a lower payout ratio, LYB or PPG?
LyondellBasell Industries N.V. has a lower payout ratio of 11% compared to Ppg Industries Inc's 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LYB vs PPG: which is better for retirement income?
It depends on your priorities. LYB for current income, LYB for safety. Many retirement investors hold both for diversification.
LYB Dividend Analysis | PPG Dividend Analysis | All Comparisons | Comparison Tool