CVX vs KMI: Dividend Yield, Growth & Safety Comparison
Chevron Corp (CVX) and Kinder Morgan, Inc. (KMI) are both in the Energy sector, making them natural rivals for dividend investors. Both stocks offer similar yields — CVX at 3.75% and KMI at 3.77%. For dividend growth, KMI leads with a 5-year CAGR of 9.6% versus CVX's 6.5%. CVX holds the edge in dividend safety with a "Safe" rating. CVX is a Dividend Aristocrat with 38 years of consecutive increases.
Key Metrics Comparison
| Metric | CVX | KMI |
|---|
| Dividend Yield | 3.75% | 3.77% |
| Annual Dividend | $6.84 | $1.17 |
| 5-Year CAGR | 6.5% | 9.6% |
| Payout Ratio | 1% | 85% |
| Consecutive Years | 38 | 0 |
| Price | $184.05 | $32.20 |
Yield Comparison
Kinder Morgan, Inc. (KMI) currently yields 3.77%, which is solid for the broader market. Chevron Corp (CVX) yields a nearly identical 3.75%. In dollar terms, KMI pays $1.17/share annually versus CVX's $6.84/share.
Dividend Growth
Over the past five years, KMI has grown its dividend at a 9.6% CAGR compared to CVX's 6.5%. 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%). KMI: Dividend growth is accelerating — the 3-year CAGR of 17.2% exceeds the 5-year rate of 9.6% and the 10-year rate of 13.4%.
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. KMI's dividend safety is rated "At Risk." The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. CVX's payout ratio of 1% is more conservative than KMI's 85%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in KMI generates approximately $377/year in dividend income, compared to $375/year from CVX — a difference of $2/year. At $100,000, that gap widens to $20/year.
Verdict
- Best for growth: KMI
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, CVX or KMI?
Kinder Morgan, Inc. (KMI) has a higher dividend yield of 3.77% compared to Chevron Corp (CVX) at 3.75%.
Is CVX or KMI a better dividend growth stock?
Kinder Morgan, Inc. has the stronger dividend growth with a 5-year CAGR of 9.6%, compared to Chevron Corp's 6.5%.
Which is safer for dividend income, CVX or KMI?
Chevron Corp's dividend safety is rated "Safe" while Kinder Morgan, Inc. is rated "At Risk." 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 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
How much income does $10,000 in CVX vs KMI generate?
A $10,000 investment in CVX generates approximately $375/year in dividends, while the same amount in KMI generates about $377/year.
Is CVX or KMI a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat with 38 consecutive years of increases. Kinder Morgan, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, CVX or KMI?
Chevron Corp has a lower payout ratio of 1% compared to Kinder Morgan, Inc.'s 85%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CVX vs KMI: which is better for retirement income?
It depends on your priorities. KMI for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
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