CVX vs KMI: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
KMI yields 0.02% more than CVX. In dollar terms, CVX pays $6.84/share vs KMI's $1.17/share annually.
Dividend Growth
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: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.
KMI: The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in CVX vs KMI today?
At $184.05 per share, $10,000 buys about 54.3 shares of Chevron Corp (CVX). Each share pays $6.84 per year in dividends, so the position starts out generating roughly $372 per year — about $31 a month.
At $32.20 per share, $10,000 buys about 310.6 shares of Kinder Morgan, Inc. (KMI). Each share pays $1.17 per year in dividends, so the position starts out generating roughly $363 per year — about $30 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of CVX or KMI income look like in 10 years?
Chevron Corp (CVX) has raised its dividend about 6.5% a year over the past five years. If that pace held, the $375 per year that $10,000 generates today at the current 3.75% yield would reach $706 per year by 2036 — a 7.1% yield on the original cost.
Kinder Morgan, Inc. (KMI) has raised its dividend about 9.6% a year over the past five years. If that pace held, the $377 per year that $10,000 generates today at the current 3.77% yield would reach $940 per year by 2036 — a 9.4% yield on the original cost.
On those trailing rates, KMI pays more in 2036: $940 versus $706 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can CVX and KMI afford their dividends?
Chevron Corp (CVX) earns $6.63 per share against $6.84 paid out in dividends — 1.0x coverage (a 1% payout ratio).
Kinder Morgan, Inc. (KMI) earns $1.37 per share against $1.17 paid out in dividends — 1.2x coverage (a 85% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, CVX or KMI?
For income you need right now, Kinder Morgan, Inc. (KMI) leads: $100,000 invested today pays about $314 a month at the current 3.77% yield, versus $313 a month from Chevron Corp (CVX) at 3.75%.
KMI also leads on dividend growth (9.6% vs 6.5% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: CVX has raised its dividend 38 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,021/yr in CVX vs $1,362/yr in KMI by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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