COP vs OKE: Dividend Comparison

At $111.65 per share, $10,000 buys about 89.6 shares of Conocophillips (COP). Each share pays $3.18 per year in dividends, so the position starts out generating roughly $285 per year — about $24 a month.

At $86.11 per share, $10,000 buys about 116.1 shares of Oneok Inc /New/ (OKE). Each share pays $4.12 per year in dividends, so the position starts out generating roughly $478 per year — about $40 a month.

OKE is the larger income stream from day one: $194 per year more on the same $10,000 invested.

Conocophillips (COP) has raised its dividend about 11.1% a year over the past five years. If that pace held, the $296 per year that $10,000 generates today at the current 2.96% yield would reach $844 per year by 2036 — a 8.4% yield on the original cost.

Oneok Inc /New/ (OKE) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $494 per year that $10,000 generates today at the current 4.94% yield would reach $1,291 per year by 2036 — a 12.9% yield on the original cost.

On those trailing rates, OKE pays more in 2036: $1,291 versus $844 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

Not within a realistic holding period. Conocophillips (COP) is growing its dividend faster (11.1% vs 10.1% a year), but the starting-yield gap — 4.94% for OKE vs 2.96% for COP — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, OKE's head start is decisive.

Conocophillips (COP) earns $6.35 per share against $3.18 paid out in dividends — 2.0x coverage (a 50% payout ratio).

Oneok Inc /New/ (OKE) earns $5.44 per share against $4.12 paid out in dividends — 1.3x coverage (a 75% payout ratio).

COP's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for OKE if earnings weaken.

For income you need right now, Oneok Inc /New/ (OKE) leads: $100,000 invested today pays about $411 a month at the current 4.94% yield, versus $247 a month from Conocophillips (COP) at 2.96%.

With a decade or more before the income is needed, COP's faster dividend growth (11.1% vs 10.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

On consistency: COP has raised its dividend 1 consecutive year.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.