Dividend Aristocrats In Focus Part 7: PPG Industries, Inc. (PPG)

PPG Industries, Inc. (NYSE:PPG) may not be a household name for dividend investors, but it has an impressive company history.  It was founded in 1883, as Pittsburgh Plate Glass.

Today, PPG operates across the world, with 47,000 employees and nearly $15 billion in annual sales.

PPG stock has delivered a 245% total return to shareholders over the past decade.

ppg-historical-performance

The stock offers steady earnings growth and a long track record of paying dividends. In fact, PPG has paid (1) 472 consecutive quarterly dividends, and has made uninterrupted dividend payments… since 1899.

PPG has increased its dividend for 44 consecutive years. The company’s long dividend streak makes it a member of the exclusive Dividend Aristocrats. There are currently just 50 businesses that meet the criteria to be in this index:

– 25+ years of consecutive dividend increases

– Be a member of the S&P 500

You can see all 50 Dividend Aristocrats here. PPG’s quarterly dividend history since 1983 is shown below for a graphical representation of its history of dividend increases.

ppg-dividend-history

PPG is not the highest yielding stock. It’s dividend yield is currently a lackluster 1.7%. What the company lacks in yield, it has historically made up for in growth.

Keep reading to learn more about the investment prospects of PPG.

Business Overview

PPG is a global supplier of paints, coatings, optical products, specialty materials, and fiber glass. It services a wide range of end users, including the industrial, transportation, consumer products, and construction industries. Its products are used primarily to enhance surfaces.

Going forward, PPG intends to focus on paints and coatings. To do this, it has divested low-margin businesses and significantly reduced its presence in glass and chemicals. It has also made several acquisitions—6 acquisitions last year alone that added $400 million in annual revenue—to further expand into coatings.

ppg-portfolio

Source: 2016 Investor Overview, slide 8

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