PNC vs USB: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | PNC | USB |
|---|
| Dividend Yield | 2.75% | 3.37% |
| Annual Dividend | $6.60 | $2.04 |
| 5-Year CAGR | 16.0% | 3.8% |
| Payout Ratio | 40% | 44% |
| Consecutive Years | 0 | 15 |
| Price | $229.30 | $57.63 |
Yield Comparison
Us Bancorp De (USB) currently yields 3.37%, which is solid for the broader market. That's 0.62% more than Pnc Financial Services Group, Inc. (PNC), which yields 2.75%. In dollar terms, USB pays $2.04/share annually versus PNC's $6.60/share.
Dividend Growth
Over the past five years, PNC has grown its dividend at a 16.0% CAGR compared to USB's 3.8%. 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'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. USB's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. Both have similar payout ratios — PNC at 40% and USB at 44%.
Income Comparison
A $10,000 investment in USB generates approximately $337/year in dividend income, compared to $275/year from PNC — a difference of $62/year. At $100,000, that gap widens to $620/year.
Verdict
- Best for income: USB
- Best for growth: PNC
- Best for safety: PNC
Frequently Asked Questions
Which has a higher dividend yield, PNC or USB?
Us Bancorp De (USB) has a higher dividend yield of 3.37% compared to Pnc Financial Services Group, Inc. (PNC) at 2.75%.
Is PNC or USB 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 Us Bancorp De's 3.8%.
Which is safer for dividend income, PNC or USB?
Pnc Financial Services Group, Inc.'s dividend safety is rated "Safe" while Us Bancorp De 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 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in PNC vs USB generate?
A $10,000 investment in PNC generates approximately $275/year in dividends, while the same amount in USB generates about $337/year.
Is PNC or USB a Dividend Aristocrat?
Us Bancorp De is a Dividend Contender with 15 consecutive years of increases. Pnc Financial Services Group, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, PNC or USB?
Pnc Financial Services Group, Inc. has a lower payout ratio of 40% compared to Us Bancorp De's 44%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PNC vs USB: which is better for retirement income?
It depends on your priorities. USB for current income, PNC for dividend growth, PNC for safety. Many retirement investors hold both for diversification.
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