COP vs SLB: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Slb Limited/Nv (SLB) are both in the Energy sector, making them natural rivals for dividend investors. COP edges ahead on yield at 2.96% versus SLB's 2.28%. For dividend growth, SLB leads with a 5-year CAGR of 22.9% versus COP's 11.1%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | COP | SLB |
|---|
| Dividend Yield | 2.96% | 2.28% |
| Annual Dividend | $3.18 | $1.14 |
| 5-Year CAGR | 11.1% | 22.9% |
| Payout Ratio | 50% | 49% |
| Consecutive Years | 1 | 4 |
| Price | $111.65 | $50.61 |
Yield Comparison
Conocophillips (COP) currently yields 2.96%, which is solid for the broader market. That's 0.68% more than Slb Limited/Nv (SLB), which yields 2.28%. In dollar terms, COP pays $3.18/share annually versus SLB's $1.14/share.
Dividend Growth
Over the past five years, SLB has grown its dividend at a 22.9% CAGR compared to COP's 11.1%. 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%. SLB: Dividend growth has been steady, with a 3-year CAGR of 23.3% and a 5-year CAGR of 22.9% (10-year: -3.0%).
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. SLB's dividend safety is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. Both have similar payout ratios — COP at 50% and SLB at 49%.
Income Comparison
A $10,000 investment in COP generates approximately $296/year in dividend income, compared to $228/year from SLB — a difference of $68/year. At $100,000, that gap widens to $680/year.
Verdict
- Best for income: COP
- Best for growth: SLB
Frequently Asked Questions
Which has a higher dividend yield, COP or SLB?
Conocophillips (COP) has a higher dividend yield of 2.96% compared to Slb Limited/Nv (SLB) at 2.28%.
Is COP or SLB a better dividend growth stock?
Slb Limited/Nv has the stronger dividend growth with a 5-year CAGR of 22.9%, compared to Conocophillips's 11.1%.
Which is safer for dividend income, COP or SLB?
Conocophillips's dividend safety is rated "Safe" while Slb Limited/Nv 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 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
How much income does $10,000 in COP vs SLB generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in SLB generates about $228/year.
Which has a lower payout ratio, COP or SLB?
Slb Limited/Nv has a lower payout ratio of 49% compared to Conocophillips's 50%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs SLB: which is better for retirement income?
It depends on your priorities. COP for current income, SLB for dividend growth. Many retirement investors hold both for diversification.
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