COP vs CVX: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Chevron Corp (CVX) are both in the Energy sector, making them natural rivals for dividend investors. CVX edges ahead on yield at 3.75% versus COP's 2.96%. For dividend growth, COP leads with a 5-year CAGR of 11.1% versus CVX's 6.5%. Both stocks carry a "Safe" dividend safety rating. CVX is a Dividend Aristocrat with 38 years of consecutive increases.
Key Metrics Comparison
| Metric | COP | CVX |
|---|
| Dividend Yield | 2.96% | 3.75% |
| Annual Dividend | $3.18 | $6.84 |
| 5-Year CAGR | 11.1% | 6.5% |
| Payout Ratio | 50% | 1% |
| Consecutive Years | 1 | 38 |
| Price | $111.65 | $184.05 |
Yield Comparison
Chevron Corp (CVX) currently yields 3.75%, which is solid for the broader market. That's 0.79% more than Conocophillips (COP), which yields 2.96%. In dollar terms, CVX pays $6.84/share annually versus COP's $3.18/share.
Dividend Growth
Over the past five years, COP has grown its dividend at a 11.1% CAGR compared to CVX's 6.5%. COP: Dividend growth is slowing — the 3-year CAGR of -9.8% trails the 5-year rate of 11.1% and the 10-year rate of 17.4%. CVX: Dividend growth has been steady, with a 3-year CAGR of 6.4% and a 5-year CAGR of 6.5% (10-year: 5.3%).
Dividend Safety
COP's dividend safety is rated "Safe." The payout ratio of 50% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x. CVX's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x. CVX's payout ratio of 1% is more conservative than COP's 50%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CVX generates approximately $375/year in dividend income, compared to $296/year from COP — a difference of $79/year. At $100,000, that gap widens to $790/year.
Verdict
- Best for income: CVX
- Best for growth: COP
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, COP or CVX?
Chevron Corp (CVX) has a higher dividend yield of 3.75% compared to Conocophillips (COP) at 2.96%.
Is COP or CVX a better dividend growth stock?
Conocophillips has the stronger dividend growth with a 5-year CAGR of 11.1%, compared to Chevron Corp's 6.5%.
Which is safer for dividend income, COP or CVX?
Conocophillips's dividend safety is rated "Safe" while Chevron Corp is rated "Safe." The payout ratio of 50% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.0x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.
How much income does $10,000 in COP vs CVX generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in CVX generates about $375/year.
Is COP or CVX a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat with 38 consecutive years of increases. Conocophillips does not currently qualify for aristocrat status.
Which has a lower payout ratio, COP or CVX?
Chevron Corp has a lower payout ratio of 1% compared to Conocophillips's 50%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs CVX: which is better for retirement income?
It depends on your priorities. CVX for current income, COP for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
COP Dividend Analysis | CVX Dividend Analysis | All Comparisons | Comparison Tool