CVX vs EOG: Dividend Yield, Growth & Safety Comparison
Chevron Corp (CVX) and Eog Resources Inc (EOG) are both in the Energy sector, making them natural rivals for dividend investors. Both stocks offer similar yields — CVX at 3.75% and EOG at 3.50%. For dividend growth, CVX leads with a 5-year CAGR of 6.5% versus EOG's -1.8%. Both stocks carry a "Safe" dividend safety rating. CVX is a Dividend Aristocrat with 38 years of consecutive increases.
Key Metrics Comparison
| Metric | CVX | EOG |
|---|
| Dividend Yield | 3.75% | 3.50% |
| Annual Dividend | $6.84 | $3.94 |
| 5-Year CAGR | 6.5% | -1.8% |
| Payout Ratio | 1% | 38% |
| Consecutive Years | 38 | 0 |
| Price | $184.05 | $120.62 |
Yield Comparison
Chevron Corp (CVX) currently yields 3.75%, which is solid for the broader market. That's 0.25% more than Eog Resources Inc (EOG), which yields 3.50%. In dollar terms, CVX pays $6.84/share annually versus EOG's $3.94/share.
Dividend Growth
Over the past five years, CVX has grown its dividend at a 6.5% CAGR compared to EOG's -1.8%. CVX: Dividend growth has been steady, with a 3-year CAGR of 6.4% and a 5-year CAGR of 6.5% (10-year: 5.3%). EOG: Dividend growth is slowing — the 3-year CAGR of -10.9% trails the 5-year rate of -1.8% and the 10-year rate of 25.7%.
Dividend Safety
CVX's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x. EOG's dividend safety is rated "Safe." The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x. CVX's payout ratio of 1% is more conservative than EOG's 38%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CVX generates approximately $375/year in dividend income, compared to $350/year from EOG — a difference of $25/year. At $100,000, that gap widens to $250/year.
Verdict
- Best for income: CVX
- Best for growth: CVX
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, CVX or EOG?
Chevron Corp (CVX) has a higher dividend yield of 3.75% compared to Eog Resources Inc (EOG) at 3.50%.
Is CVX or EOG a better dividend growth stock?
Chevron Corp has the stronger dividend growth with a 5-year CAGR of 6.5%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, CVX or EOG?
Chevron Corp's dividend safety is rated "Safe" while Eog Resources Inc is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x. The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.
How much income does $10,000 in CVX vs EOG generate?
A $10,000 investment in CVX generates approximately $375/year in dividends, while the same amount in EOG generates about $350/year.
Is CVX or EOG a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat with 38 consecutive years of increases. Eog Resources Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, CVX or EOG?
Chevron Corp has a lower payout ratio of 1% compared to Eog Resources Inc's 38%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CVX vs EOG: which is better for retirement income?
It depends on your priorities. CVX for current income, CVX for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
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