BDX vs XOM: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | BDX | XOM |
|---|
| Dividend Yield | 2.36% | 2.64% |
| Annual Dividend | $4.20 | $4.00 |
| 5-Year CAGR | 6.2% | 11.2% |
| Payout Ratio | 68% | 60% |
| Consecutive Years | 43 | 42 |
| Price | $177.39 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 0.28% more than Becton Dickinson & Co (BDX), which yields 2.36%. In dollar terms, XOM pays $4.00/share annually versus BDX's $4.20/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% CAGR compared to BDX's 6.2%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. XOM's payout ratio of 60% is more conservative than BDX's 68%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $236/year from BDX — a difference of $28/year. At $100,000, that gap widens to $280/year.
Verdict
- Best for income: XOM
- Best for growth: XOM
- Best for safety: XOM
Frequently Asked Questions
Which has a higher dividend yield, BDX or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to Becton Dickinson & Co (BDX) at 2.36%.
Is BDX or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Becton Dickinson & Co's 6.2%.
Which is safer for dividend income, BDX or XOM?
Becton Dickinson & Co's dividend safety is rated "Moderate" while Exxon Mobil Corp is rated "Safe." 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. The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in BDX vs XOM generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in XOM generates about $264/year.
Is BDX or XOM a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, BDX or XOM?
Exxon Mobil Corp has a lower payout ratio of 60% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, XOM for dividend growth, XOM for safety. Many retirement investors hold both for diversification.
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