COP vs XOM: Dividend Yield, Growth & Safety Comparison
Conocophillips (COP) and Exxon Mobil Corp (XOM) are both in the Energy sector, making them natural rivals for dividend investors. COP edges ahead on yield at 2.96% versus XOM's 2.64%. Both stocks show similar dividend growth rates, each around 11.1% over the past five years. Both stocks carry a "Safe" dividend safety rating. XOM is a Dividend Aristocrat with 42 years of consecutive increases.
Key Metrics Comparison
| Metric | COP | XOM |
|---|
| Dividend Yield | 2.96% | 2.64% |
| Annual Dividend | $3.18 | $4.00 |
| 5-Year CAGR | 11.1% | 11.2% |
| Payout Ratio | 50% | 60% |
| Consecutive Years | 1 | 42 |
| Price | $111.65 | $148.59 |
Yield Comparison
Conocophillips (COP) currently yields 2.96%, which is solid for the broader market. That's 0.32% more than Exxon Mobil Corp (XOM), which yields 2.64%. In dollar terms, COP pays $3.18/share annually versus XOM's $4.00/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% 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%. XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. COP's payout ratio of 50% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in COP generates approximately $296/year in dividend income, compared to $264/year from XOM — a difference of $32/year. At $100,000, that gap widens to $320/year.
Verdict
- Best for income: COP
- Best for safety: COP
Frequently Asked Questions
Which has a higher dividend yield, COP or XOM?
Conocophillips (COP) has a higher dividend yield of 2.96% compared to Exxon Mobil Corp (XOM) at 2.64%.
Is COP or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Conocophillips's 11.1%.
Which is safer for dividend income, COP or XOM?
Conocophillips's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in COP vs XOM generate?
A $10,000 investment in COP generates approximately $296/year in dividends, while the same amount in XOM generates about $264/year.
Is COP or XOM a Dividend Aristocrat?
Exxon Mobil Corp is a Dividend Aristocrat with 42 consecutive years of increases. Conocophillips does not currently qualify for aristocrat status.
Which has a lower payout ratio, COP or XOM?
Conocophillips has a lower payout ratio of 50% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
COP vs XOM: which is better for retirement income?
It depends on your priorities. COP for current income, COP for safety. Many retirement investors hold both for diversification.
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