Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

PPG Industries (PPG Quick QuotePPG - Free Report) is headquartered in Pittsburgh, and is in the Basic Materials sector. The stock has seen a price change of -8.43% since the start of the year. Currently paying a dividend of $0.71 per share, the company has a dividend yield of 2.6%. In comparison, the Chemical - Specialty industry's yield is 0.85%, while the S&P 500's yield is 1.51%.

Looking at dividend growth, the company's current annualized dividend of $2.84 is up 6.8% from last year. Over the last 5 years, PPG Industries has increased its dividend 5 times on a year-over-year basis for an average annual increase of 5.52%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. PPG Industries's current payout ratio is 35%, meaning it paid out 35% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for PPG for this fiscal year. The Zacks Consensus Estimate for 2025 is $7.88 per share, representing a year-over-year earnings growth rate of 0.13%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PPG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).