PNC vs USB: Dividend Comparison
Dividend data as of
Pnc Financial Services Group, Inc. (PNC) and Us Bancorp De (USB) are both in the Financials sector, making them natural rivals for dividend investors. USB edges ahead on yield at 3.37% versus PNC's 2.75%. For dividend growth, PNC leads with a 5-year CAGR of 16.0% versus USB's 3.8%. Both stocks carry a "Safe" dividend safety rating. USB is a Dividend Contender with 15 years of consecutive increases.
Verdict
Yield Analysis
USB yields 0.62% more than PNC. In dollar terms, PNC pays $6.60/share vs USB's $2.04/share annually.
Dividend Growth
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%.
USB: Dividend growth is slowing — the 3-year CAGR of 2.8% trails the 5-year rate of 3.8% and the 10-year rate of 7.4%.
Dividend Safety
PNC: The payout ratio of 40% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.5x.
USB: The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in PNC vs USB today?
At $229.30 per share, $10,000 buys about 43.6 shares of Pnc Financial Services Group, Inc. (PNC). Each share pays $6.60 per year in dividends, so the position starts out generating roughly $288 per year — about $24 a month.
At $57.63 per share, $10,000 buys about 173.5 shares of Us Bancorp De (USB). Each share pays $2.04 per year in dividends, so the position starts out generating roughly $354 per year — about $30 a month.
USB is the larger income stream from day one: $66 per year more on the same $10,000 invested.
What could $10,000 of PNC or USB income look like in 10 years?
Pnc Financial Services Group, Inc. (PNC) has raised its dividend about 16.0% a year over the past five years. If that pace held, the $275 per year that $10,000 generates today at the current 2.75% yield would reach $1,207 per year by 2036 — a 12.1% yield on the original cost.
Us Bancorp De (USB) has raised its dividend about 3.8% a year over the past five years. If that pace held, the $337 per year that $10,000 generates today at the current 3.37% yield would reach $487 per year by 2036 — a 4.9% yield on the original cost.
On those trailing rates, PNC pays more in 2036: $1,207 versus $487 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would PNC's dividend growth overtake USB's higher yield?
Pnc Financial Services Group, Inc. (PNC) yields less today (2.75% vs 3.37%) but has grown its dividend faster — 16.0% vs 3.8% a year over the past five years. If both trends continued, a $10,000 position in PNC would start out-earning the same position in USB around 2028 (roughly 2 years from now), paying about $369 per year at the crossover. Before that point, USB pays more each year; after it, the gap compounds in PNC's favor.
Can PNC and USB afford their dividends?
Pnc Financial Services Group, Inc. (PNC) earns $16.60 per share against $6.60 paid out in dividends — 2.5x coverage (a 40% payout ratio).
Us Bancorp De (USB) earns $4.62 per share against $2.04 paid out in dividends — 2.3x coverage (a 44% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, PNC or USB?
For income you need right now, Us Bancorp De (USB) leads: $100,000 invested today pays about $281 a month at the current 3.37% yield, versus $229 a month from Pnc Financial Services Group, Inc. (PNC) at 2.75%.
With a decade or more before the income is needed, PNC's faster dividend growth (16.0% vs 3.8% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: USB has raised its dividend 15 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 $1,583/yr in PNC vs $679/yr in USB 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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