Is PPG a good stock to buy? We came across a bullish thesis on PPG Industries, Inc. on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on PPG. PPG Industries, Inc.’s share was trading at $106.69 as of March 25th. PPG’s trailing and forward P/E were 14.05 and 12.24 respectively according to Yahoo Finance.
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PPG Industries (PPG) is a global leader in paints, coatings, and specialty products, serving over 50 countries across construction, consumer products, industrial, and transportation markets. The company’s business model is centered on technology-advantaged, spec-driven coatings that provide durability, corrosion resistance, and application efficiency, creating a durable moat through OEM qualification cycles and sticky customer relationships rather than commodity pricing.
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PPG reports through three segments—Global Architectural Coatings, Performance Coatings, and Industrial Coatings—covering decorative, protective, automotive, aerospace, packaging, and general industrial finishes. This approach allows the company to gain share even in slow end-markets while maintaining pricing discipline.
The dividend profile is a standout feature, with 55 consecutive years of dividend increases, a 2.20% yield, $2.84 annual dividend, +32% five-year dividend growth, and a conservative 40% payout ratio, leaving ample room for buybacks, restructuring, and strategic investments without jeopardizing the streak.
In Q4 2025, PPG reported net sales of $3.914 billion and adjusted EPS of $1.51, reflecting strong segment performance: Global Architectural Coatings generated $137 million in income, Performance Coatings $246 million, and Industrial Coatings $200 million, supported by record aerospace sales, a $315 million backlog, double-digit packaging volume growth, and 4% organic industrial coatings growth. Structural cost actions contributed $75 million in 2025 with an additional $50 million expected in 2026.
PPG’s disciplined capital allocation generated $1.9 billion in operating cash flow in 2025, with $1.4 billion returned via dividends and repurchases. With its combination of resilient, spec-driven businesses, consistent cash generation, and elite financial discipline, PPG represents a high-quality investment that balances growth, defensive qualities, and a long-term compounding dividend engine.
Previously, we covered a bullish thesis on Eastman Chemical Company (NYSE:EMN) by Kristopher Rymer in January 2025, which highlighted its leadership in the circular economy, growth through advanced recycling technologies, and strong cash flow and dividends. EMN’s stock price has depreciated by approximately 19.45% since our coverage reflecting earnings misses and weaker demand across chemical end-markets amid macro and tariff-related headwinds. Serhio MaxDividends shares a similar view but emphasizes PPG Industries’ (PPG) global, spec-driven coatings business and elite dividend discipline.
PPG Industries, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held PPG at the end of the fourth quarter which was 34 in the previous quarter. While we acknowledge the risk and potential of PPG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PPG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
