BDX vs XOM: Dividend Comparison
Dividend data as of
Becton Dickinson & Co (BDX) from Health Care and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — BDX at 2.36% and XOM at 2.64%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus BDX's 6.2%. XOM holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Verdict
Yield Analysis
XOM yields 0.28% more than BDX. In dollar terms, BDX pays $4.20/share vs XOM's $4.00/share annually.
Dividend Growth
BDX: Dividend growth has been steady, with a 3-year CAGR of 6.5% and a 5-year CAGR of 6.2% (10-year: 5.2%).
XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
Dividend Safety
BDX: The payout ratio of 68% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
XOM: The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in BDX vs XOM today?
At $177.39 per share, $10,000 buys about 56.4 shares of Becton Dickinson & Co (BDX). Each share pays $4.20 per year in dividends, so the position starts out generating roughly $237 per year — about $20 a month.
At $148.59 per share, $10,000 buys about 67.3 shares of Exxon Mobil Corp (XOM). Each share pays $4.00 per year in dividends, so the position starts out generating roughly $269 per year — about $22 a month.
XOM is the larger income stream from day one: $32 per year more on the same $10,000 invested.
What could $10,000 of BDX or XOM income look like in 10 years?
Becton Dickinson & Co (BDX) has raised its dividend about 6.2% a year over the past five years. If that pace held, the $236 per year that $10,000 generates today at the current 2.36% yield would reach $431 per year by 2036 — a 4.3% yield on the original cost.
Exxon Mobil Corp (XOM) has raised its dividend about 11.2% a year over the past five years. If that pace held, the $264 per year that $10,000 generates today at the current 2.64% yield would reach $760 per year by 2036 — a 7.6% yield on the original cost.
On those trailing rates, XOM pays more in 2036: $760 versus $431 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would BDX's dividend growth overtake XOM's higher yield?
It doesn't, on the trailing numbers. Exxon Mobil Corp (XOM) yields more today (2.64% vs 2.36%) and has also grown its dividend at least as fast (11.2% vs 6.2% a year over five years). Unless BDX accelerates its raises or XOM stumbles, BDX never closes the income gap — XOM wins on both current income and growth.
Can BDX and XOM afford their dividends?
Becton Dickinson & Co (BDX) earns $6.12 per share against $4.20 paid out in dividends — 1.5x coverage (a 68% payout ratio).
Exxon Mobil Corp (XOM) earns $6.70 per share against $4.00 paid out in dividends — 1.7x coverage (a 60% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, BDX or XOM?
For income you need right now, Exxon Mobil Corp (XOM) leads: $100,000 invested today pays about $220 a month at the current 2.64% yield, versus $197 a month from Becton Dickinson & Co (BDX) at 2.36%.
XOM also leads on dividend growth (11.2% vs 6.2% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: BDX has raised its dividend 43 consecutive years; XOM has raised its dividend 42 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $544/yr in BDX vs $986/yr in XOM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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