COP vs KMI: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Kinder Morgan, Inc. (KMI) are both in the Energy sector, making them natural rivals for dividend investors. KMI edges ahead on yield at 3.77% versus COP's 2.96%. For dividend growth, COP leads with a 5-year CAGR of 11.1% versus KMI's 9.6%. COP holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | COP | KMI |
|---|
| Dividend Yield | 2.96% | 3.77% |
| Annual Dividend | $3.18 | $1.17 |
| 5-Year CAGR | 11.1% | 9.6% |
| Payout Ratio | 50% | 85% |
| Consecutive Years | 1 | 0 |
| Price | $111.65 | $32.20 |
Yield Comparison
Kinder Morgan, Inc. (KMI) currently yields 3.77%, which is solid for the broader market. That's 0.81% more than Conocophillips (COP), which yields 2.96%. In dollar terms, KMI pays $1.17/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 KMI's 9.6%. 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%. KMI: Dividend growth is accelerating — the 3-year CAGR of 17.2% exceeds the 5-year rate of 9.6% and the 10-year rate of 13.4%.
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. KMI's dividend safety is rated "At Risk." The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. COP's payout ratio of 50% is more conservative than KMI's 85%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in KMI generates approximately $377/year in dividend income, compared to $296/year from COP — a difference of $81/year. At $100,000, that gap widens to $810/year.
Verdict
- Best for income: KMI
- Best for growth: COP
- Best for safety: COP
Frequently Asked Questions
Which has a higher dividend yield, COP or KMI?
Kinder Morgan, Inc. (KMI) has a higher dividend yield of 3.77% compared to Conocophillips (COP) at 2.96%.
Is COP or KMI a better dividend growth stock?
Conocophillips has the stronger dividend growth with a 5-year CAGR of 11.1%, compared to Kinder Morgan, Inc.'s 9.6%.
Which is safer for dividend income, COP or KMI?
Conocophillips's dividend safety is rated "Safe" while Kinder Morgan, Inc. is rated "At Risk." 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 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
How much income does $10,000 in COP vs KMI generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in KMI generates about $377/year.
Which has a lower payout ratio, COP or KMI?
Conocophillips has a lower payout ratio of 50% compared to Kinder Morgan, Inc.'s 85%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs KMI: which is better for retirement income?
It depends on your priorities. KMI for current income, COP for dividend growth, COP for safety. Many retirement investors hold both for diversification.
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