PPG Stock: A Great Dividend Investment for Retirees

The maker of paints and coatings has reliably paid out dividends to investors for more than a century.

(Image credit: Pete Klinger)

If you’re a dividend hound, you probably won’t be wowed by PPG Industries (symbol PPG, $103.92). Paying at an annual rate of $1.39 per share, PPG’s stock yields a modest 1.4%, well below the 2.1% yield of Standard & Poor’s 500-stock index. Yet PPG is one of only 52 companies in the S&P 500 that has raised its dividend annually for at least 25 years. In fact, the company hasn’t missed a payment in 116 years. And with the business growing steadily, the stock has potential to climb, too.

Once known as Pittsburgh Plate Glass, PPG churns out paints and specialized “coatings” used in everything from household appliances to passenger jets. A decade ago, PPG also made chemicals and glass products, but it has sold most of those businesses and bought dozens of others, focusing on the more profitable market for coatings. PPG snapped up Akzo Nobel’s North American paint business in 2013 and added Mexican paint maker Comex last year to expand into Latin America. All told, coatings now account for 93% of its business, up from 55% in 2005. Wall Street expects earnings per share to hit $5.73 this year, up 18% from 2014. Analysts on average expect profits to jump by 14% next year.

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Daren Fonda
Senior Associate Editor, Kiplinger's Personal Finance
Daren joined Kiplinger in July 2015 after spending more than 20 years in New York City as a business and financial writer. He spent seven years at Time magazine and joined SmartMoney in 2007, where he wrote about investing and contributed car reviews to the magazine. Daren also worked as a writer in the fund industry for Janus Capital and Fidelity Investments and has been licensed as a Series 7 securities representative.