PPG vs VMC: Dividend Yield, Growth & Safety Comparison
Ppg Industries Inc (PPG) and Vulcan Materials CO (VMC) are both in the Materials sector, making them natural rivals for dividend investors. PPG offers a significantly higher 2.15% yield compared to VMC's 0.58%, a gap of 1.57%. Both stocks carry a "Safe" dividend safety rating. PPG is a Dividend Aristocrat with 42 years of consecutive increases.
Key Metrics Comparison
| Metric | PPG | VMC |
|---|
| Dividend Yield | 2.15% | 0.58% |
| Annual Dividend | $2.78 | $1.96 |
| 5-Year CAGR | 5.3% | N/A |
| Payout Ratio | 40% | 23% |
| Consecutive Years | 42 | N/A |
| Price | $131.33 | $326.35 |
Yield Comparison
Ppg Industries Inc (PPG) currently yields 2.15%, which is solid for the broader market. That's 1.57% more than Vulcan Materials CO (VMC), which yields 0.58%. In dollar terms, PPG pays $2.78/share annually versus VMC's $1.96/share.
Dividend Growth
PPG has a 5-year dividend CAGR of 5.3%. Growth data is not available for VMC. 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
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. VMC's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. VMC's payout ratio of 23% 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 $58/year from VMC — a difference of $157/year. At $100,000, that gap widens to $1570/year.
Verdict
- Best for income: PPG
- Best for safety: VMC
Frequently Asked Questions
Which has a higher dividend yield, PPG or VMC?
Ppg Industries Inc (PPG) has a higher dividend yield of 2.15% compared to Vulcan Materials CO (VMC) at 0.58%.
Which is safer for dividend income, PPG or VMC?
Ppg Industries Inc's dividend safety is rated "Safe" while Vulcan Materials CO 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 23% is well within sustainable levels, leaving room for future increases.
How much income does $10,000 in PPG vs VMC generate?
A $10,000 investment in PPG generates approximately $215/year in dividends, while the same amount in VMC generates about $58/year.
Is PPG or VMC a Dividend Aristocrat?
Ppg Industries Inc is a Dividend Aristocrat with 42 consecutive years of increases. Vulcan Materials CO does not currently qualify for aristocrat status.
Which has a lower payout ratio, PPG or VMC?
Vulcan Materials CO has a lower payout ratio of 23% compared to Ppg Industries Inc's 40%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PPG vs VMC: which is better for retirement income?
It depends on your priorities. PPG for current income, VMC for safety. Many retirement investors hold both for diversification.
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