CVX vs OKE: Dividend Yield, Growth & Safety Comparison
Chevron Corp (CVX) and Oneok Inc /New/ (OKE) are both in the Energy sector, making them natural rivals for dividend investors. OKE offers a significantly higher 4.94% yield compared to CVX's 3.75%, a gap of 1.18%. For dividend growth, OKE leads with a 5-year CAGR of 10.1% 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 | OKE |
|---|
| Dividend Yield | 3.75% | 4.94% |
| Annual Dividend | $6.84 | $4.12 |
| 5-Year CAGR | 6.5% | 10.1% |
| Payout Ratio | 1% | 75% |
| Consecutive Years | 38 | 0 |
| Price | $184.05 | $86.11 |
Yield Comparison
Oneok Inc /New/ (OKE) currently yields 4.94%, which is attractive for the broader market. That's 1.18% more than Chevron Corp (CVX), which yields 3.75%. In dollar terms, OKE pays $4.12/share annually versus CVX's $6.84/share.
Dividend Growth
Over the past five years, OKE has grown its dividend at a 10.1% 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%). OKE: Dividend growth is accelerating — the 3-year CAGR of 19.9% exceeds the 5-year rate of 10.1% and the 10-year rate of 9.3%.
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. OKE's dividend safety is rated "Moderate." The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. CVX's payout ratio of 1% is more conservative than OKE's 75%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in OKE generates approximately $494/year in dividend income, compared to $375/year from CVX — a difference of $119/year. At $100,000, that gap widens to $1190/year.
Verdict
- Best for income: OKE
- Best for growth: OKE
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, CVX or OKE?
Oneok Inc /New/ (OKE) has a higher dividend yield of 4.94% compared to Chevron Corp (CVX) at 3.75%.
Is CVX or OKE a better dividend growth stock?
Oneok Inc /New/ has the stronger dividend growth with a 5-year CAGR of 10.1%, compared to Chevron Corp's 6.5%.
Which is safer for dividend income, CVX or OKE?
Chevron Corp's dividend safety is rated "Safe" while Oneok Inc /New/ is rated "Moderate." 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 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
How much income does $10,000 in CVX vs OKE generate?
A $10,000 investment in CVX generates approximately $375/year in dividends, while the same amount in OKE generates about $494/year.
Is CVX or OKE a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat with 38 consecutive years of increases. Oneok Inc /New/ does not currently qualify for aristocrat status.
Which has a lower payout ratio, CVX or OKE?
Chevron Corp has a lower payout ratio of 1% compared to Oneok Inc /New/'s 75%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CVX vs OKE: which is better for retirement income?
It depends on your priorities. OKE for current income, OKE for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
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