PPG vs XOM: Dividend Yield, Growth & Safety Comparison
Ppg Industries Inc (PPG) from Materials and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. XOM edges ahead on yield at 2.64% versus PPG's 2.15%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus PPG's 5.3%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | PPG | XOM |
|---|
| Dividend Yield | 2.15% | 2.64% |
| Annual Dividend | $2.78 | $4.00 |
| 5-Year CAGR | 5.3% | 11.2% |
| Payout Ratio | 40% | 60% |
| Consecutive Years | 42 | 42 |
| Price | $131.33 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 0.49% more than Ppg Industries Inc (PPG), which yields 2.15%. In dollar terms, XOM pays $4.00/share annually versus PPG's $2.78/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% 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%. XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% 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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. PPG's payout ratio of 40% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $215/year from PPG — a difference of $49/year. At $100,000, that gap widens to $490/year.
Verdict
- Best for income: XOM
- Best for growth: XOM
- Best for safety: PPG
Frequently Asked Questions
Which has a higher dividend yield, PPG or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to Ppg Industries Inc (PPG) at 2.15%.
Is PPG or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Ppg Industries Inc's 5.3%.
Which is safer for dividend income, PPG or XOM?
Ppg Industries Inc's dividend safety is rated "Safe" while Exxon Mobil 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in PPG vs XOM generate?
A $10,000 investment in PPG generates approximately $215/year in dividends, while the same amount in XOM generates about $264/year.
Is PPG or XOM a Dividend Aristocrat?
Ppg Industries Inc is a Dividend Aristocrat (42 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, PPG or XOM?
Ppg Industries Inc has a lower payout ratio of 40% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PPG vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, XOM for dividend growth, PPG for safety. Many retirement investors hold both for diversification.
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