PNC vs TROW: Dividend Yield, Growth & Safety Comparison
Pnc Financial Services Group, Inc. (PNC) and Price T Rowe Group Inc (TROW) are both in the Financials sector, making them natural rivals for dividend investors. PNC offers a significantly higher 2.75% yield compared to TROW's 1.31%, a gap of 1.43%. For dividend growth, PNC leads with a 5-year CAGR of 16.0% versus TROW's -8.7%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | PNC | TROW |
|---|
| Dividend Yield | 2.75% | 1.31% |
| Annual Dividend | $6.60 | $1.27 |
| 5-Year CAGR | 16.0% | -8.7% |
| Payout Ratio | 40% | 55% |
| Consecutive Years | 0 | 3 |
| Price | $229.30 | $93.63 |
Yield Comparison
Pnc Financial Services Group, Inc. (PNC) currently yields 2.75%, which is solid for the broader market. That's 1.43% more than Price T Rowe Group Inc (TROW), which yields 1.31%. In dollar terms, PNC pays $6.60/share annually versus TROW's $1.27/share.
Dividend Growth
Over the past five years, PNC has grown its dividend at a 16.0% CAGR compared to TROW's -8.7%. PNC: Dividend growth is accelerating — the 3-year CAGR of 19.8% exceeds the 5-year rate of 16.0% and the 10-year rate of 17.0%. TROW: Dividend growth is accelerating — the 3-year CAGR of 2.0% exceeds the 5-year rate of -8.7% and the 10-year rate of 10.0%.
Dividend Safety
PNC'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. TROW's dividend safety is rated "Safe." The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.3x. PNC's payout ratio of 40% is more conservative than TROW's 55%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PNC generates approximately $275/year in dividend income, compared to $131/year from TROW — a difference of $144/year. At $100,000, that gap widens to $1440/year.
Verdict
- Best for income: PNC
- Best for growth: PNC
- Best for safety: PNC
Frequently Asked Questions
Which has a higher dividend yield, PNC or TROW?
Pnc Financial Services Group, Inc. (PNC) has a higher dividend yield of 2.75% compared to Price T Rowe Group Inc (TROW) at 1.31%.
Is PNC or TROW a better dividend growth stock?
Pnc Financial Services Group, Inc. has the stronger dividend growth with a 5-year CAGR of 16.0%, compared to Price T Rowe Group Inc's -8.7%.
Which is safer for dividend income, PNC or TROW?
Pnc Financial Services Group, Inc.'s dividend safety is rated "Safe" while Price T Rowe Group Inc is rated "Safe." The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x. The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.3x.
How much income does $10,000 in PNC vs TROW generate?
A $10,000 investment in PNC generates approximately $275/year in dividends, while the same amount in TROW generates about $131/year.
Which has a lower payout ratio, PNC or TROW?
Pnc Financial Services Group, Inc. has a lower payout ratio of 40% compared to Price T Rowe Group Inc's 55%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PNC vs TROW: which is better for retirement income?
It depends on your priorities. PNC for current income, PNC for dividend growth, PNC for safety. Many retirement investors hold both for diversification.
PNC Dividend Analysis | TROW Dividend Analysis | All Comparisons | Comparison Tool