2.20% Dividend Yield, 55 Years of Dividend Hikes – A Global Coatings Leader That Touches Cars, Planes, Factories, and Homes
This business sells “invisible essentials”: the coatings that make cars look new, aircraft parts resist corrosion, factories run longer, and homes survive weather without peeling. It’s known for performance‑driven chemistry where customers pay for specs—durability, corrosion resistance, and application efficiency—so the moat comes from qualification cycles and sticky OEM relationships, not commodity pricing. The result is a company that can grind through mixed macro cycles while still taking share in niches like aerospace and packaging, then turning that durability into a dividend streak that’s measured in decades.
PPG Industries (PPG)
Financial Score: 98 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn. PPG (PPG) develops and delivers paints, coatings, and specialty products, marketing and selling in more than 50 countries and serving construction, consumer products, industrial, and transportation markets and aftermarkets. The company reports through three segments—Global Architectural Coatings, Performance Coatings, and Industrial Coatings—covering decorative paint, protective and marine, automotive and aerospace coatings, packaging coatings, and general industrial finishes. Its model is built around technology‑advantaged coatings that are specified into customer processes, which supports pricing discipline and share gains even when end‑markets slow.
Dividend machine: 55 raises with a conservative payout
PPG’s dividend profile is: 2.20% dividend yield, $2.84 annual dividend, 55 consecutive years of dividend growth, +32.00% 5‑year dividend growth, and a 40.06% payout ratio. That payout ratio is the quiet safety feature: less than half of earnings earmarked for dividends leaves room for buybacks, restructuring, and bolt‑on investments without threatening the streak. The five‑year growth rate tells you the board isn’t trying to “wow” with aggressive hikes—it’s compounding at a pace that matches an industrial cash‑flow engine.
Business and reporting: Q4 2025
For Q4 2025, PPG reported net sales of $3,914 million versus $3,729 million in Q4 2024 and net income from continuing operations of $302 million versus $2 million a year earlier. Reported EPS from continuing operations was $1.34 and adjusted EPS was $1.51, compared with $0.01 reported and $1.61 adjusted in Q4 2024. Segment results in the quarter were: Global Architectural Coatings net sales $951 million with segment income $137 million; Performance Coatings net sales $1,322 million with segment income $246 million; Industrial Coatings net sales $1,641 million with segment income $200 million, while corporate expenses were $114 million and net interest expense was $34 million (adjusted effective tax rate approximately 24%).
Business growth: aerospace backlog, packaging volume, and structural cost wins
Aerospace was a standout: PPG reported record fourth‑quarter aerospace sales and said aerospace backlog increased to approximately $315 million. Industrial Coatings delivered 4% organic sales growth in Q4 2025 driven by share gains, and packaging coatings posted double‑digit volume growth in the quarter, showing that “spec‑driven” products are translating into real demand. On self‑help, PPG stated structural cost actions delivered $75 million of benefits in 2025 and it expects incremental restructuring savings of $50 million in 2026 as European manufacturing consolidation and other reductions continue.
Fun Fact: A trademark that’s oddly literal
PPG’s line “We protect and beautify the world®” isn’t just marketing—it’s a registered trademark, and it maps cleanly to what coatings do for a living: protect surfaces from corrosion and wear, and make them look better for longer. For a company that has been around since the 19th century, it’s a rare example of a corporate tagline that still describes the product economics with no translation needed. It also fits the strategy shift you can see in the numbers: pushing harder into performance coatings like aerospace and packaging where “protection” is a spec, not a nice‑to‑have.
Final Take – Top-tier score, backed by real cash generation
PPG’s dividend snapshot is: 2.20% yield, $2.84 annual dividend, 40.06% payout ratio, 55 straight years of dividend hikes, and +32.00% 5‑year dividend growth. Financial Score: 98 — that’s true top‑tier territory; companies above 90 are generally considered the genuinely reliable names, and 98 puts PPG in the elite bucket. In 2025, the business backed that quality with $1.9 billion operating cash flow and $1.4 billion returned via dividends and repurchases, plus $75 million of structural cost benefits (with $50 million more targeted in 2026), which is exactly the kind of “cash + discipline” combo that keeps long dividend streaks alive.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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