PITTSBURGH - PPG Industries Inc. (NYSE:PPG), a global supplier of paints, coatings, and specialty materials, announced an increase in its quarterly dividend. The Board of Directors declared a dividend of 68 cents per share, up three cents from the previous payout. Shareholders on record as of August 12 will receive the dividend on September 12.
This increment marks PPG's 504th consecutive dividend payment, a streak that underscores the company's commitment to shareholder returns since 1899. Tim Knavish, PPG's chairman and chief executive officer, expressed pride in the company's legacy and confidence in its financial stability, which supports the increase in the dividend.
PPG's history spans over 140 years, with a focus on innovation and collaboration to meet customer needs across various markets, including construction, consumer products, and transportation. The company, headquartered in Pittsburgh, operates in more than 70 countries and reported net sales of $18.2 billion in 2023.
The information regarding the dividend is based on a press release statement from PPG. The company's dedication to consistent shareholder value is reflected in this latest dividend announcement, as it continues its long-standing practice of annual payouts.
In other recent news, PPG Industries has been active on multiple fronts. The company surpassed earnings expectations in Q1 2024, reporting adjusted earnings per diluted share of $1.86 and sales of $4.3 billion. Wells Fargo Securities upgraded PPG to Overweight, raising the price target to $163.00, while BMO Capital adjusted its price target to $165 and retained an Outperform rating.
PPG also unveiled plans to invest $300 million in its North American manufacturing operations, including the construction of a new manufacturing facility in Tennessee. The company is strategically exiting the U.S. architectural coatings market, a move expected to improve margins within its Performance Coatings segment.
Pascal Tisseyre was appointed as PPG's new VP for government affairs in the EMEA region, overseeing public policy, political engagement, and compliance. These recent developments reflect PPG's strategic efforts to strengthen its operations and foster growth.
InvestingPro Insights
PPG Industries Inc. (NYSE:PPG) has not only consistently delivered dividends to its shareholders but has also been increasing them, showcasing a strong commitment to shareholder returns. With a PRONEWS24 coupon code, investors can explore additional InvestingPro Tips that further highlight PPG's financial resilience and market position.
InvestingPro Tips indicate that PPG has maintained its dividend payments for an impressive 54 consecutive years, with the latest increase marking the 53rd consecutive year of dividend raises. This track record of dividend reliability is a testament to the company's stable financial performance and prudent capital management strategies. Moreover, analysts predict that PPG will remain profitable this year, providing further confidence in the company's ability to sustain its dividend payments.
From a valuation perspective, PPG is currently trading at a P/E ratio of 22.48, which adjusts to 20.13 when looking at the last twelve months as of Q1 2024. While the company's PEG ratio for the same period stands at 2.09, suggesting a higher price relative to earnings growth, PPG's stock typically exhibits low price volatility, which might appeal to investors seeking stability in their portfolio.
InvestingPro Data also reveals that PPG's market capitalization is valued at $31.85 billion, with a revenue growth of 2.56% in the last twelve months as of Q1 2024. The company's gross profit margin during this period was substantial at 41.97%, reflecting the efficiency of its operations and the strength of its business model.
For investors interested in further insights and analysis, there are additional InvestingPro Tips available that can provide a deeper understanding of PPG's financial health and investment potential. Don't forget to use the PRONEWS24 code for up to 10% off on a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips.
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