NUE vs PPG: Dividend Yield, Growth & Safety Comparison
Nucor Corp (NUE) and Ppg Industries Inc (PPG) are both in the Materials sector, making them natural rivals for dividend investors. PPG offers a significantly higher 2.15% yield compared to NUE's 1.15%, a gap of 1.00%. For dividend growth, NUE leads with a 5-year CAGR of 6.5% versus PPG's 5.3%. Both stocks carry a "Safe" dividend safety rating. NUE is a Dividend Contender while PPG is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | NUE | PPG |
|---|
| Dividend Yield | 1.15% | 2.15% |
| Annual Dividend | $2.21 | $2.78 |
| 5-Year CAGR | 6.5% | 5.3% |
| Payout Ratio | 29% | 40% |
| Consecutive Years | 16 | 42 |
| Price | $182.61 | $131.33 |
Yield Comparison
Ppg Industries Inc (PPG) currently yields 2.15%, which is solid for the broader market. That's 1.00% more than Nucor Corp (NUE), which yields 1.15%. In dollar terms, PPG pays $2.78/share annually versus NUE's $2.21/share.
Dividend Growth
Over the past five years, NUE has grown its dividend at a 6.5% CAGR compared to PPG's 5.3%. NUE: Dividend growth is slowing — the 3-year CAGR of 3.3% trails the 5-year rate of 6.5% and the 10-year rate of 4.4%. 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
NUE's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. 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. NUE's payout ratio of 29% is more conservative than PPG's 40%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PPG generates approximately $215/year in dividend income, compared to $115/year from NUE — a difference of $100/year. At $100,000, that gap widens to $1000/year.
Verdict
- Best for income: PPG
- Best for growth: NUE
- Best for safety: NUE
Frequently Asked Questions
Which has a higher dividend yield, NUE or PPG?
Ppg Industries Inc (PPG) has a higher dividend yield of 2.15% compared to Nucor Corp (NUE) at 1.15%.
Is NUE or PPG a better dividend growth stock?
Nucor Corp has the stronger dividend growth with a 5-year CAGR of 6.5%, compared to Ppg Industries Inc's 5.3%.
Which is safer for dividend income, NUE or PPG?
Nucor Corp's dividend safety is rated "Safe" while Ppg Industries Inc is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.4x. 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 NUE vs PPG generate?
A $10,000 investment in NUE generates approximately $115/year in dividends, while the same amount in PPG generates about $215/year.
Is NUE or PPG a Dividend Aristocrat?
Nucor Corp is a Dividend Contender (16 years) and Ppg Industries Inc is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, NUE or PPG?
Nucor Corp has a lower payout ratio of 29% compared to Ppg Industries Inc's 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
NUE vs PPG: which is better for retirement income?
It depends on your priorities. PPG for current income, NUE for dividend growth, NUE for safety. Many retirement investors hold both for diversification.
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