October 03, 2025 a 11:32 am
PPG: Dividend Analysis - PPG Industries, Inc.
PPG Industries, Inc., a leader in the coatings and paints sector, offers a reliable dividend profile with a historical record of stability and growth. The company's ability to maintain and incrementally grow its dividends over the years signifies a strong commitment to shareholder returns. However, the relatively moderate dividend yield must be weighed against robust growth metrics and financial stability indicators. With a diverse market presence and consistent cash flow generation, PPG remains a noteworthy option for income-focused investors. Its long-standing history of dividend payments and absence of recent cuts further enhance its attractiveness in a volatile market.
Overview 📊
Evaluating PPG Industries, Inc.'s dividend yield and history gives insight into its stability as an income-generating investment. Here's a detailed overview:
| Metric | Value |
|---|---|
| Sector | Coatings and Paints |
| Dividend yield | 2.58% |
| Current dividend per share | 2.66 USD |
| Dividend history | 43 years |
| Last cut or suspension | None |
Dividend History 🗣️
PPG Industries' stable dividend history over 43 years indicates a reliable track record rewarding shareholders, crucial for income-focused investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.07 |
| 2024 | 2.66 |
| 2023 | 2.54 |
| 2022 | 2.42 |
| 2021 | 2.26 |
Dividend Growth 📈
Understanding dividend growth rates allows investors to gauge potential future returns and company stability. PPG's growth rate over recent years showcases its incremental yield increase.
| Time | Growth |
|---|---|
| 3 years | 5.58% |
| 5 years | 6.08% |
The average dividend growth is 6.08% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 📉
Payout ratios are critical to assess the sustainability of dividend payments. PPG has maintained a moderate payout ratio, indicating the potential capacity to continue dividend payments.
| Key figure | Ratio |
|---|---|
| EPS-based | 59.68% |
| Free cash flow-based | 75.06% |
With an EPS payout ratio of 59.68%, PPG maintains a moderate level of reinvestment and payout balance. The FCF-based ratio at 75.06% suggests sufficient cash flow coverage but warrants monitoring for long-term commitments.
Cashflow & Capital Efficiency 💰
Analyzing cash flow metrics and capital efficiency highlights a company's operational effectiveness and ability to support future dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.50% | 5.37% | 1.61% |
| Earnings Yield | 4.00% | 3.60% | 3.46% |
| CAPEX to Operating Cash Flow | 50.77% | 21.40% | 50.47% |
| Stock-based Compensation to Revenue | 0.27% | 0.34% | 0.22% |
| Free Cash Flow / Operating Cash Flow Ratio | 49.23% | 78.60% | 49.53% |
PPG's metrics demonstrate good cash flow stability and efficiency to sustain dividends. The variation in Free Cash Flow Yield across years reveals fluctuating efficiency, yet the availability of flows ensures robust capital returns.
Balance Sheet & Leverage Analysis 📈
Key balance sheet ratios are essential to understanding a company's financial health and leverage, influencing dividend sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.94 | 0.84 | 1.16 |
| Debt-to-Assets | 0.33 | 0.30 | 0.37 |
| Debt-to-Capital | 0.49 | 0.46 | 0.54 |
| Net Debt to EBITDA | 1.98 | 2.08 | 3.23 |
| Current Ratio | 1.31 | 1.47 | 1.52 |
| Quick Ratio | 0.94 | 1.09 | 1.04 |
| Financial Leverage | 2.86 | 2.76 | 3.15 |
Overall, the metrics reveal a solid leverage position, with improvements in debt-to-equity and financial leverage over the years, suggesting enhancements in financial balance.
Fundamental Strength & Profitability 📊
Metrics such as ROE, ROA, and profitability margins are insightful indicators of a company's fundamental health and overall performance.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 16.45% | 16.22% | 15.56% |
| Return on Assets | 5.74% | 5.87% | 4.95% |
| Net Margin | 7.04% | 7.82% | 6.57% |
| EBIT Margin | 13.21% | 11.93% | 9.75% |
| EBITDA Margin | 16.31% | 15.09% | 12.96% |
| Gross Margin | 41.61% | 40.41% | 36.12% |
| Research & Development to Revenue | 2.67% | 2.61% | 2.78% |
The data indicates solid fundamental strength, with PPG generating consistent returns and profitability, thus maintaining an attractive value proposition for stakeholders.
Price Development 📊
Dividend Scoring System ✅
| Category | Score | Progress |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
Rating 🗣️
In summary, PPG Industries, Inc. presents a solid investment potential for dividend-seeking investors, given its robust history of dividend payments and moderate growth projections. The company's strong financial metrics and commitment to shareholder returns position it well in its sector, offering a dependable income stream with potential for capital appreciation.