Covered, compounding. A 2.68% yield on a 42.4% payout is covered with room retained: $0.74 a quarter, raised from $0.71 in July 2026. PPG's own October 2026 declaration states this payment marks 55 consecutive years of annual dividend increases and the 513th consecutive dividend payment, with uninterrupted annual dividends since 1899.
Key risk: Coatings cyclicality — construction, automotive, and industrial demand drive volumes, and a broad manufacturing downturn would pressure the earnings that cover this payout.
Changes if: The payout pushes past 60% without earnings growth, or the annual raise streak PPG itself reports is broken.
- ✓Payout-coverage check: 42.4% of trailing earnings — $2.96 indicated, with most earnings retained. Covered.
- ✓Yield check: 2.68% indicated — $0.74/qtr × 4 at the $110.61 close on Oct. 23, 2026. Real, regular quarterly yield.
- ✓Dividend growth check: Quarterly dividend raised in July 2026, from $0.71 to $0.74 (about 4.2%); PPG's October 2026 declaration states 55 consecutive years of annual increases.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.