Updated 3/13/25
PPG Industries has been around for well over a century, and that kind of longevity is rare. The company started back in the 1880s and today, it’s one of the most recognized names in the coatings and specialty materials space. From automotive and aerospace to architectural and industrial coatings, PPG’s products touch just about every sector you can think of.
For long-term investors, especially those focused on dividends, there’s something appealing about a company that’s weathered economic storms and kept rewarding shareholders along the way.
Recent Events
This past year hasn’t exactly been smooth sailing for PPG. The company saw its revenue fall sharply in the fourth quarter, down over 14% year-over-year. That’s a big drop, and it’s mostly tied to softer industrial demand and economic slowdowns in parts of Europe. That said, margins have held up better than some might expect. Operating margin sits above 12%, and net margin is just over 7%.
Even with the revenue dip, PPG has managed to keep profitability in check, largely due to its ability to push through price increases and manage costs. The stock itself hasn’t escaped the broader industrial pullback—it’s down over 21% over the past year—but the resulting decline in share price has pushed the dividend yield up. That shift makes it a more interesting name for income-seeking investors.
Key Dividend Metrics
💰 Forward Yield: 2.46%
📊 5-Year Average Yield: 1.80%
🧮 Payout Ratio: 46.5%
🎯 Consecutive Dividend Increases: 52 years
📆 Next Dividend Date: March 12, 2025
🔐 Dividend Safety: Backed by strong free cash flow
Dividend Overview
PPG’s dividend might not make headlines for being high-yield, but its reliability is what stands out. With a current yield of 2.46%, it’s comfortably above its own five-year average. That higher yield is a direct result of recent stock price weakness, but it also means investors can lock in better income while waiting for a potential recovery.
One of the most compelling things about PPG is its track record. The company has increased its dividend every year for over five decades. That consistency doesn’t happen by accident—it comes from a management team that prioritizes returning capital to shareholders while keeping the business on solid footing.
At $2.72 per share annually, the dividend is well-covered by both earnings and free cash flow. The payout ratio is under 50%, giving it a cushion if profits take another hit. This isn’t a high-octane dividend play, but it’s one that fits nicely in a conservative income portfolio.
Dividend Growth and Safety
When you look at dividend safety, you want to know whether the company can keep paying you even in rougher patches. PPG delivers here. Over the past year, it generated $1.42 billion in operating cash flow and more than a billion in free cash flow. That’s plenty to cover the dividend with room left over.
Growth-wise, PPG tends to raise the dividend at a steady pace. Think mid-single-digit increases—nothing flashy, but dependable. That fits the company’s overall personality: steady, methodical, and built for the long term. Investors don’t have to worry about dividend cuts out of the blue, and that’s a real plus in uncertain economic environments.
Chart Analysis
Current Market Cycle Position
PPG’s chart is currently showing signs of being in the markdown phase of the Wyckoff market cycle. This is evident from the steady series of lower highs and lower lows that have developed over the past several months. The price is trading well below both the 50-day and 200-day simple moving averages, and both those averages are sloping downward, confirming a strong bearish trend. The long-term downtrend remains intact, and no credible signs of accumulation or a bottoming formation have emerged just yet.
Volume Behavior
Volume provides further confirmation of a weak structure. Although there are occasional spikes on green bars, the overall distribution of volume has been tilted toward down days. Selling volume hasn’t dried up—if anything, the sellers remain active. Notably, large red volume spikes show up during sharp down moves, reinforcing the markdown thesis. There hasn’t been any significant dry-up in volume or high-volume reversals that might hint at institutional accumulation.
Moving Averages and Trend Structure
The 50-day moving average remains firmly below the 200-day, with a widening gap, showing a continuation of long-term weakness. Every attempt to rally back to either average has been rejected. Each time the price approaches these dynamic resistance lines, selling pressure overwhelms, and the stock resumes its descent. The crossover and sustained distance between the moving averages is one of the clearest technical confirmations that the markdown phase remains dominant.
Relative Strength Index (RSI)
The RSI is hovering near the oversold region but hasn’t dipped into extreme territory. This reflects persistent weakness but also shows the stock is not yet seeing panic selling or capitulation. RSI has remained stuck in the lower band (30–50) for most of the past few months, which is typical for assets in a confirmed downtrend. There are no bullish divergences visible at this point, suggesting momentum is still favoring the downside.
Latest Five Candles and Price Action
Looking at the most recent five candles, there’s been a clear breakdown attempt. The candles have long upper wicks, which points to selling into strength. Buyers have tried to push higher during intraday sessions, but each time sellers have stepped in and closed the sessions near the lows. That kind of wick behavior reflects continued distribution and hesitation by the bulls. The last candle specifically closed near the session low, adding to the bearish tone and suggesting further downside pressure is likely to persist unless something changes structurally.
This section of the chart tells a story of ongoing weakness without signs yet of a bottom. The market isn’t seeing aggressive buyers willing to step in, and sellers remain firmly in control.
Analyst Ratings
📉 PPG Industries has recently experienced a shift in analyst sentiment, with some firms dialing back their optimism due to ongoing performance challenges and a weak demand backdrop across key markets.
🪙 In February 2025, one major investment bank downgraded the stock from “Overweight” to “Neutral,” adjusting its price target from $145 to $115. The change came as a response to softer-than-expected quarterly results, with particular concern over the company’s exposure to industrial markets in Europe and a noticeable drop in volumes across several segments.
📊 Another prominent firm held its “Neutral” rating but reduced its target price to $135. Their note pointed to persistent pressure on margins and limited visibility into near-term revenue recovery, despite PPG’s strong brand and global reach.
🧭 As of late March, the broader analyst consensus sits at a “Hold.” Among 15 tracked analysts, the average price target stands at $138.15. That implies a potential upside of about 21% from the stock’s current price in the $110 range.
🔍 The consensus shows a cautious but not bearish outlook. Analysts seem to agree that while PPG is fundamentally sound, macro pressures and internal cost challenges may keep a lid on near-term performance. Many appear to be taking a wait-and-see approach, looking for stronger signals of demand stabilization or margin improvement before turning more positive.
📌 Overall, analyst sentiment has cooled compared to previous quarters, but there’s no strong bearish turn either. Most are watching closely to see if management can navigate the headwinds while maintaining its long-standing reputation for operational discipline.
Earnings Report Summary
PPG Industries recently posted its earnings for the fourth quarter and full year of 2024, and the results painted a mixed picture. While the company managed to deliver some steady performance in specific areas, overall numbers were weighed down by broader industry pressures and a tougher economic backdrop.
In the fourth quarter, revenue came in at $3.73 billion, which was down over 14 percent compared to the same time last year. That drop largely reflected weaker demand in several end markets, especially in Europe, where industrial activity continues to lag. Despite the revenue decline, adjusted earnings per share ticked up slightly to $1.61. It wasn’t quite what analysts had hoped for, but still an improvement from the year-ago quarter.
Looking closer at the different business segments, the Performance Coatings group stood out with a small gain in sales. Aerospace and protective coatings helped carry that load, showing there’s still strength in certain specialized areas. On the other hand, the Industrial Coatings segment saw a notable drop in revenue, driven by lower volumes and some pricing adjustments tied to contractual index-based formulas. The architectural coatings business also saw a decline, partly due to currency headwinds and softer demand in a few key regions.
For the full year, PPG reported total sales of $15.85 billion, down slightly from 2023. Despite that dip, full-year adjusted EPS rose to $7.87, showing a 6 percent gain. It’s a sign that the company is managing costs well and finding efficiencies, even in a sluggish environment.
One area investors may appreciate is how PPG continues to reward shareholders. Over the course of 2024, the company returned around $1.4 billion through dividends and share repurchases, staying consistent with its long-standing capital return strategy.
Looking ahead to 2025, PPG’s outlook is cautious. The company expects a slow start to the year, mainly due to continued weakness in industrial demand, especially across Europe. They’re forecasting full-year adjusted EPS in the range of $7.75 to $8.05, which suggests they see modest improvement on the horizon, but they’re not banking on a quick rebound.
In short, PPG is navigating a tricky macro landscape, but its ability to hold earnings steady and maintain shareholder returns speaks to the strength of its business model.
Financial Health and Stability
The balance sheet tells a solid story, though it’s not spotless. PPG is carrying about $6.4 billion in total debt, which puts its debt-to-equity ratio just over 92%. That’s not low, but it’s not alarming either given the company’s ability to generate cash.
Cash on hand sits at $1.37 billion, and with a current ratio of 1.31, short-term obligations look manageable. The return on equity is strong at over 18%, which signals that management is making good use of shareholder capital.
This isn’t a company running on fumes. Even though the top line took a hit recently, the foundation is still sturdy enough to support both operations and dividend payments.
Valuation and Stock Performance
At the current share price around $112, PPG trades at a forward P/E of just over 14. That’s actually pretty reasonable given the long-term earnings profile and the strength of its brand portfolio. The PEG ratio is under 0.9, which hints at potential undervaluation relative to projected growth.
Price-to-book is hovering around 3.7, which is slightly lower than where it’s been in the past couple of years. Overall, the valuation reflects a market that’s cautious about near-term growth but still acknowledges the company’s long-term value.
The stock is trading well below its 52-week high of $145.60. That kind of drawdown might scare off momentum traders, but for dividend investors, it opens a door. The higher yield and lower price could work in favor of long-term returns if the business regains its footing.
Risks and Considerations
There are a few things to keep in mind. PPG isn’t immune to the global industrial slowdown. The double-digit revenue decline in the latest quarter was a clear signal that demand, especially in Europe, is under pressure.
There’s also the issue of input costs. While raw material inflation has cooled a bit, labor and energy expenses are still climbing. PPG has pricing power, but there’s only so much they can pass along before customers push back.
Debt is another factor to watch. While the current levels are manageable, any major acquisition or unexpected downturn could stretch the balance sheet. That’s not a red flag just yet, but it’s something to monitor.
Final Thoughts
PPG Industries has earned its place among the dividend stalwarts. It’s not the flashiest name out there, but it offers something more important to many investors—stability. The dividend has been paid and raised for over 50 years, and it’s backed by consistent cash flow and a global business model that has stood the test of time.
With the stock down significantly from recent highs, the yield is more attractive than it’s been in years. The valuation is reasonable, the payout is safe, and there’s still growth potential once industrial demand picks back up.
For dividend-focused investors looking for a solid industrial name to round out a portfolio, PPG brings a lot to the table. It’s a business built on resilience, one that keeps finding ways to return value to shareholders, even when the cycle gets tough.