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PPG Industries (PPG) Increases Quarterly Dividend by 10%

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PPG Industries, Inc. (PPG - Free Report) announced that its board has approved an increase in its quarterly shareholder dividend by 10% or 5 cents per share. This brings the quarterly dividend payout to 59 cents per share from the prior figure of 54 cents. The increased dividend will be payable on Sep 10, 2021, to shareholders of record as of Aug 10, 2021.

The company has another similar quarterly dividend payment upcoming in December and both payments together will be a milestone, marking 50 consecutive years of annual increases in the company’s dividend.

This marks the company’s 492nd consecutive dividend payment and it has paid annual dividends uninterruptedly since 1899.

PPG noted that only very few companies have reached the coveted 50-year landmark, which stands testimony to its dedication and legacy of rewarding its shareholders. It also highlights that the management team strongly believes in the company’s ability to generate a steady cash flow, which is now further enhanced by its recent acquisitions.

Shares of PPG have surged 48.8% over a year, outperforming the industry’s 34.2% growth. Its earnings growth rate for the current year is pegged at 43.9%.

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The company, in its last-quarter earnings call, stated that it expects growth in sales and earnings on the back of the economic revival and recent acquisitions. It also sees structural cost savings from its restructuring actions. It expects overall global demand to continue to be broad-based in many of its end-use markets. Higher domestic flight activities in various parts of the world are also expected to support the gradual recovery in the aftermarket aerospace coatings demand in second-half 2021.

Zacks Rank & Other Stocks to Consider

Currently, PPG Industries carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include Orion Engineered Carbons S.A (OEC - Free Report) , Avient Corporation (AVNT - Free Report) and Cabot Corporation (CBT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Orion has a projected earnings growth rate of 79.8% for the current year. The company’s shares have surged 66.9% over a year.

Avient has a projected earnings growth rate of 64.2% for the current year. The company’s shares have appreciated 83.5% over a year.

Cabot has a projected earnings growth rate of 137.5% for the current year. The company’s shares have jumped 45.8% over a year.

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