CVX vs PSX: Dividend Yield, Growth & Safety Comparison
Chevron Corp (CVX) and Phillips 66 (PSX) are both in the Energy sector, making them natural rivals for dividend investors. CVX edges ahead on yield at 3.75% versus PSX's 3.02%. Both stocks show similar dividend growth rates, each around 6.5% over the past five years. Both stocks carry a "Safe" dividend safety rating. CVX is a Dividend Aristocrat while PSX is a Dividend Contender.
Key Metrics Comparison
| Metric | CVX | PSX |
|---|
| Dividend Yield | 3.75% | 3.02% |
| Annual Dividend | $6.84 | $4.75 |
| 5-Year CAGR | 6.5% | 7.0% |
| Payout Ratio | 1% | 44% |
| Consecutive Years | 38 | 13 |
| Price | $184.05 | $159.16 |
Yield Comparison
Chevron Corp (CVX) currently yields 3.75%, which is solid for the broader market. That's 0.73% more than Phillips 66 (PSX), which yields 3.02%. In dollar terms, CVX pays $6.84/share annually versus PSX's $4.75/share.
Dividend Growth
Over the past five years, PSX has grown its dividend at a 7.0% 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%). PSX: Dividend growth is slowing — the 3-year CAGR of 6.3% trails the 5-year rate of 7.0% and the 10-year rate of 10.8%.
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. PSX's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. CVX's payout ratio of 1% is more conservative than PSX's 44%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CVX generates approximately $375/year in dividend income, compared to $302/year from PSX — a difference of $73/year. At $100,000, that gap widens to $730/year.
Verdict
- Best for income: CVX
- Best for growth: PSX
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, CVX or PSX?
Chevron Corp (CVX) has a higher dividend yield of 3.75% compared to Phillips 66 (PSX) at 3.02%.
Is CVX or PSX a better dividend growth stock?
Phillips 66 has the stronger dividend growth with a 5-year CAGR of 7.0%, compared to Chevron Corp's 6.5%.
Which is safer for dividend income, CVX or PSX?
Chevron Corp's dividend safety is rated "Safe" while Phillips 66 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 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in CVX vs PSX generate?
A $10,000 investment in CVX generates approximately $375/year in dividends, while the same amount in PSX generates about $302/year.
Is CVX or PSX a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat (38 years) and Phillips 66 is a Dividend Contender (13 years).
Which has a lower payout ratio, CVX or PSX?
Chevron Corp has a lower payout ratio of 1% compared to Phillips 66's 44%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CVX vs PSX: which is better for retirement income?
It depends on your priorities. CVX for current income, PSX for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
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