PPG vs TGT: Dividend Yield, Growth & Safety Comparison
Ppg Industries Inc (PPG) from Materials and Target Corp (TGT) from Consumer Staples offer different dividend profiles for income-focused portfolios. TGT offers a significantly higher 4.01% yield compared to PPG's 2.15%, a gap of 1.86%. For dividend growth, TGT leads with a 5-year CAGR of 9.4% versus PPG's 5.3%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | PPG | TGT |
|---|
| Dividend Yield | 2.15% | 4.01% |
| Annual Dividend | $2.78 | $4.50 |
| 5-Year CAGR | 5.3% | 9.4% |
| Payout Ratio | 40% | 55% |
| Consecutive Years | 42 | 42 |
| Price | $131.33 | $115.49 |
Yield Comparison
Target Corp (TGT) currently yields 4.01%, which is attractive for the broader market. That's 1.86% more than Ppg Industries Inc (PPG), which yields 2.15%. In dollar terms, TGT pays $4.50/share annually versus PPG's $2.78/share.
Dividend Growth
Over the past five years, TGT has grown its dividend at a 9.4% CAGR compared to PPG's 5.3%. 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%. TGT: Dividend growth is slowing — the 3-year CAGR of 1.8% trails the 5-year rate of 9.4% and the 10-year rate of 11.1%.
Dividend Safety
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. TGT'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 1.8x. PPG's payout ratio of 40% is more conservative than TGT's 55%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in TGT generates approximately $401/year in dividend income, compared to $215/year from PPG — a difference of $186/year. At $100,000, that gap widens to $1860/year.
Verdict
- Best for income: TGT
- Best for growth: TGT
- Best for safety: PPG
Frequently Asked Questions
Which has a higher dividend yield, PPG or TGT?
Target Corp (TGT) has a higher dividend yield of 4.01% compared to Ppg Industries Inc (PPG) at 2.15%.
Is PPG or TGT a better dividend growth stock?
Target Corp has the stronger dividend growth with a 5-year CAGR of 9.4%, compared to Ppg Industries Inc's 5.3%.
Which is safer for dividend income, PPG or TGT?
Ppg Industries Inc's dividend safety is rated "Safe" while Target Corp 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 1.8x.
How much income does $10,000 in PPG vs TGT generate?
A $10,000 investment in PPG generates approximately $215/year in dividends, while the same amount in TGT generates about $401/year.
Is PPG or TGT a Dividend Aristocrat?
Ppg Industries Inc is a Dividend Aristocrat (42 years) and Target Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, PPG or TGT?
Ppg Industries Inc has a lower payout ratio of 40% compared to Target Corp's 55%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PPG vs TGT: which is better for retirement income?
It depends on your priorities. TGT for current income, TGT for dividend growth, PPG for safety. Many retirement investors hold both for diversification.
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