PPG Rewards Shareholders with 9.3% Dividend Hike; Street Says Buy

Paints company PPG Industries, Inc. (PPG) recently announced a quarterly dividend of 59 cents per share, a hike of 9.3% from its previous dividend of 54 cents. The dividend will be paid on September 10, 2021 to shareholders of record as of August 10, 2021.

Following the news, shares of the company appreciated marginally to close at $171.48 in Thursday’s trading session. Based on Thursday’s closing price, the annual dividend yield now stands at 1.4%.

CEO of PPG Michael H. McGarry said, “The 50-year milestone of annual dividend increases has been achieved by a very limited group of companies, and is a true testament to our company’s legacy of consistently rewarding our shareholders. The increase is also a reflection of the strong confidence that PPG’s Board and management team have in our ability to continue to generate and grow our operating cash flow, which is now enhanced by the five recent acquisitions that we completed.” (See PPG stock chart on TipRanks)

On July 1, Societe Generale analyst Peter Clark reiterated a Buy rating on the stock. The analyst, however, raised the price target from $168 to $192, which implies upside potential of 12% from current levels.

According to Clark, the company’s cost control measures and pricing power is likely to aid its operating leverage and margins.

Consensus among analysts is a Strong Buy based on 10 Buys and 2 Holds. The average PPG price target of $190 implies upside potential of 10.8% from current levels.

PPG scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 48.8% over the past year.

Related News:
Walmart Partners with Symbotic to Achieve Supply Chain Automation
NortonLifeLock and Avast in Talks of a Possible Merger
Accenture to Acquire Wabion; Street Says Buy