MCD vs PPG: Dividend Yield, Growth & Safety Comparison
Mcdonalds Corp (MCD) from Consumer Discretionary and Ppg Industries Inc (PPG) from Materials offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — MCD at 2.17% and PPG at 2.15%. For dividend growth, MCD leads with a 5-year CAGR of 8.1% versus PPG's 5.3%. PPG holds the edge in dividend safety with a "Safe" rating. MCD is a Dividend King while PPG is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | MCD | PPG |
|---|
| Dividend Yield | 2.17% | 2.15% |
| Annual Dividend | $7.08 | $2.78 |
| 5-Year CAGR | 8.1% | 5.3% |
| Payout Ratio | 60% | 40% |
| Consecutive Years | 50 | 42 |
| Price | $327.89 | $131.33 |
Yield Comparison
Mcdonalds Corp (MCD) currently yields 2.17%, which is solid for the broader market. Ppg Industries Inc (PPG) yields a nearly identical 2.15%. In dollar terms, MCD pays $7.08/share annually versus PPG's $2.78/share.
Dividend Growth
Over the past five years, MCD has grown its dividend at a 8.1% CAGR compared to PPG's 5.3%. MCD: Dividend growth is slowing — the 3-year CAGR of 7.3% trails the 5-year rate of 8.1% and the 10-year rate of 7.9%. 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
MCD's dividend safety is rated "Moderate." The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. 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. PPG's payout ratio of 40% is more conservative than MCD's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in MCD generates approximately $217/year in dividend income, compared to $215/year from PPG — a difference of $2/year. At $100,000, that gap widens to $20/year.
Verdict
- Best for growth: MCD
- Best for safety: PPG
Frequently Asked Questions
Which has a higher dividend yield, MCD or PPG?
Mcdonalds Corp (MCD) has a higher dividend yield of 2.17% compared to Ppg Industries Inc (PPG) at 2.15%.
Is MCD or PPG a better dividend growth stock?
Mcdonalds Corp has the stronger dividend growth with a 5-year CAGR of 8.1%, compared to Ppg Industries Inc's 5.3%.
Which is safer for dividend income, MCD or PPG?
Mcdonalds Corp's dividend safety is rated "Moderate" while Ppg Industries Inc is rated "Safe." The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. 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 MCD vs PPG generate?
A $10,000 investment in MCD generates approximately $217/year in dividends, while the same amount in PPG generates about $215/year.
Is MCD or PPG a Dividend Aristocrat?
Mcdonalds Corp is a Dividend King (50 years) and Ppg Industries Inc is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, MCD or PPG?
Ppg Industries Inc has a lower payout ratio of 40% compared to Mcdonalds Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
MCD vs PPG: which is better for retirement income?
It depends on your priorities. MCD for dividend growth, PPG for safety. Many retirement investors hold both for diversification.
MCD Dividend Analysis | PPG Dividend Analysis | All Comparisons | Comparison Tool