COP vs EOG: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Eog Resources Inc (EOG) are both in the Energy sector, making them natural rivals for dividend investors. EOG edges ahead on yield at 3.50% versus COP's 2.96%. For dividend growth, COP leads with a 5-year CAGR of 11.1% versus EOG's -1.8%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | COP | EOG |
|---|
| Dividend Yield | 2.96% | 3.50% |
| Annual Dividend | $3.18 | $3.94 |
| 5-Year CAGR | 11.1% | -1.8% |
| Payout Ratio | 50% | 38% |
| Consecutive Years | 1 | 0 |
| Price | $111.65 | $120.62 |
Yield Comparison
Eog Resources Inc (EOG) currently yields 3.50%, which is solid for the broader market. That's 0.54% more than Conocophillips (COP), which yields 2.96%. In dollar terms, EOG pays $3.94/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 EOG's -1.8%. 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%. EOG: Dividend growth is slowing — the 3-year CAGR of -10.9% trails the 5-year rate of -1.8% and the 10-year rate of 25.7%.
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. EOG's dividend safety is rated "Safe." The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x. EOG's payout ratio of 38% is more conservative than COP's 50%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EOG generates approximately $350/year in dividend income, compared to $296/year from COP — a difference of $54/year. At $100,000, that gap widens to $540/year.
Verdict
- Best for income: EOG
- Best for growth: COP
- Best for safety: EOG
Frequently Asked Questions
Which has a higher dividend yield, COP or EOG?
Eog Resources Inc (EOG) has a higher dividend yield of 3.50% compared to Conocophillips (COP) at 2.96%.
Is COP or EOG a better dividend growth stock?
Conocophillips has the stronger dividend growth with a 5-year CAGR of 11.1%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, COP or EOG?
Conocophillips's dividend safety is rated "Safe" while Eog Resources Inc 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 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.
How much income does $10,000 in COP vs EOG generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in EOG generates about $350/year.
Which has a lower payout ratio, COP or EOG?
Eog Resources Inc has a lower payout ratio of 38% compared to Conocophillips's 50%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs EOG: which is better for retirement income?
It depends on your priorities. EOG for current income, COP for dividend growth, EOG for safety. Many retirement investors hold both for diversification.
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