COP vs OKE: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Oneok Inc /New/ (OKE) are both in the Energy sector, making them natural rivals for dividend investors. OKE offers a significantly higher 4.94% yield compared to COP's 2.96%, a gap of 1.98%. Both stocks show similar dividend growth rates, each around 11.1% over the past five years. COP holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | COP | OKE |
|---|
| Dividend Yield | 2.96% | 4.94% |
| Annual Dividend | $3.18 | $4.12 |
| 5-Year CAGR | 11.1% | 10.1% |
| Payout Ratio | 50% | 75% |
| Consecutive Years | 1 | 0 |
| Price | $111.65 | $86.11 |
Yield Comparison
Oneok Inc /New/ (OKE) currently yields 4.94%, which is attractive for the broader market. That's 1.98% more than Conocophillips (COP), which yields 2.96%. In dollar terms, OKE pays $4.12/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 OKE's 10.1%. 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%. OKE: Dividend growth is accelerating — the 3-year CAGR of 19.9% exceeds the 5-year rate of 10.1% and the 10-year rate of 9.3%.
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. OKE's dividend safety is rated "Moderate." The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. COP's payout ratio of 50% is more conservative than OKE's 75%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in OKE generates approximately $494/year in dividend income, compared to $296/year from COP — a difference of $198/year. At $100,000, that gap widens to $1980/year.
Verdict
- Best for income: OKE
- Best for growth: COP
- Best for safety: COP
Frequently Asked Questions
Which has a higher dividend yield, COP or OKE?
Oneok Inc /New/ (OKE) has a higher dividend yield of 4.94% compared to Conocophillips (COP) at 2.96%.
Is COP or OKE a better dividend growth stock?
Conocophillips has the stronger dividend growth with a 5-year CAGR of 11.1%, compared to Oneok Inc /New/'s 10.1%.
Which is safer for dividend income, COP or OKE?
Conocophillips's dividend safety is rated "Safe" while Oneok Inc /New/ is rated "Moderate." 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 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
How much income does $10,000 in COP vs OKE generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in OKE generates about $494/year.
Which has a lower payout ratio, COP or OKE?
Conocophillips has a lower payout ratio of 50% compared to Oneok Inc /New/'s 75%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs OKE: which is better for retirement income?
It depends on your priorities. OKE for current income, COP for dividend growth, COP for safety. Many retirement investors hold both for diversification.
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