COP vs PSX: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Phillips 66 (PSX) are both in the Energy sector, making them natural rivals for dividend investors. Both stocks offer similar yields — COP at 2.96% and PSX at 3.02%. For dividend growth, COP leads with a 5-year CAGR of 11.1% versus PSX's 7.0%. Both stocks carry a "Safe" dividend safety rating. PSX is a Dividend Contender with 13 years of consecutive increases.
Key Metrics Comparison
| Metric | COP | PSX |
|---|
| Dividend Yield | 2.96% | 3.02% |
| Annual Dividend | $3.18 | $4.75 |
| 5-Year CAGR | 11.1% | 7.0% |
| Payout Ratio | 50% | 44% |
| Consecutive Years | 1 | 13 |
| Price | $111.65 | $159.16 |
Yield Comparison
Phillips 66 (PSX) currently yields 3.02%, which is solid for the broader market. That's 0.06% more than Conocophillips (COP), which yields 2.96%. In dollar terms, PSX pays $4.75/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 PSX's 7.0%. 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%. PSX: Dividend growth is slowing — the 3-year CAGR of 6.3% trails the 5-year rate of 7.0% and the 10-year rate of 10.8%.
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. PSX's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. PSX's payout ratio of 44% is more conservative than COP's 50%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PSX generates approximately $302/year in dividend income, compared to $296/year from COP — a difference of $6/year. At $100,000, that gap widens to $60/year.
Verdict
- Best for income: PSX
- Best for growth: COP
- Best for safety: PSX
Frequently Asked Questions
Which has a higher dividend yield, COP or PSX?
Phillips 66 (PSX) has a higher dividend yield of 3.02% compared to Conocophillips (COP) at 2.96%.
Is COP or PSX a better dividend growth stock?
Conocophillips has the stronger dividend growth with a 5-year CAGR of 11.1%, compared to Phillips 66's 7.0%.
Which is safer for dividend income, COP or PSX?
Conocophillips's dividend safety is rated "Safe" while Phillips 66 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 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in COP vs PSX generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in PSX generates about $302/year.
Is COP or PSX a Dividend Aristocrat?
Phillips 66 is a Dividend Contender with 13 consecutive years of increases. Conocophillips does not currently qualify for aristocrat status.
Which has a lower payout ratio, COP or PSX?
Phillips 66 has a lower payout ratio of 44% compared to Conocophillips's 50%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs PSX: which is better for retirement income?
It depends on your priorities. PSX for current income, COP for dividend growth, PSX for safety. Many retirement investors hold both for diversification.
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