PPG Industries: A Dividend Play with Strong Earnings Growth and Consistent Dividend Payments

PPG Industries (PPG) is a Basic Materials stock with a dividend yield of 2.56%, higher than the Chemical - Specialty industry's yield of 1.08% and the S&P 500's yield of 1.51%. The company's current annualized dividend of $2.72 is up 2.3% from last year and has increased 5 times in the past 5 years. PPG expects solid earnings growth for 2025 and has a Zacks Consensus Estimate of $7.89 per share.

PPG Industries (PPG), a leading manufacturer and distributor of paints, coatings, and specialty materials, offers an attractive dividend yield of 2.56%, which is notably higher than the Chemical - Specialty industry average of 1.08% and the S&P 500's yield of 1.51% [1]. The company's current annualized dividend of $2.72 has increased by 2.3% from last year and has been raised five times over the past five years [1]. This consistent dividend growth, coupled with solid earnings expectations for 2025, makes PPG an appealing choice for income-focused investors.

PPG Industries operates through two segments: Performance Coatings and Industrial Coatings. The Performance Coatings segment serves automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs. The Industrial Coatings segment caters to commercial, military, regional jet, and general aviation aircraft, among others [1]. The company's diversified business model has proven successful, with analysts expecting earnings per share (EPS) of $7.89 for 2025, as per the Zacks Consensus Estimate [1].

In addition to its strong dividend profile, PPG Industries has received positive analyst upgrades. Citigroup, Deutsche Bank, and Mizuho, among others, have raised their price objectives on the stock, reflecting their optimism about the company's future performance [1]. The company's recent earnings report, released on July 29, 2025, also indicated robust financial health, with a net margin of 6.25% and a return on equity of 23.85% [1].

Moreover, institutional investors have shown confidence in PPG Industries by increasing their stakes in the company. Cooke & Bieler LP, Mesirow Financial Investment Management Inc., Simon Quick Advisors LLC, Strs Ohio, and Assetmark Inc. have all bolstered their holdings in the specialty chemicals company [1]. This increased institutional ownership, now at 81.86%, further underscores the company's appeal to investors.

In conclusion, PPG Industries presents a compelling investment opportunity for those seeking a stable dividend income. The company's strong financial performance, positive analyst sentiment, and robust institutional support make it an attractive choice within the Basic Materials sector. As always, investors should conduct thorough due diligence and consider their risk tolerance before making any investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/sen-shelley-moore-capito-sells-off-shares-of-ppg-industries-inc-nyseppg-2025-08-05/