CVX vs SLB: Dividend Yield, Growth & Safety Comparison
Chevron Corp (CVX) and Slb Limited/Nv (SLB) are both in the Energy sector, making them natural rivals for dividend investors. CVX offers a significantly higher 3.75% yield compared to SLB's 2.28%, a gap of 1.47%. For dividend growth, SLB leads with a 5-year CAGR of 22.9% versus CVX's 6.5%. Both stocks carry a "Safe" dividend safety rating. CVX is a Dividend Aristocrat with 38 years of consecutive increases.
Key Metrics Comparison
| Metric | CVX | SLB |
|---|
| Dividend Yield | 3.75% | 2.28% |
| Annual Dividend | $6.84 | $1.14 |
| 5-Year CAGR | 6.5% | 22.9% |
| Payout Ratio | 1% | 49% |
| Consecutive Years | 38 | 4 |
| Price | $184.05 | $50.61 |
Yield Comparison
Chevron Corp (CVX) currently yields 3.75%, which is solid for the broader market. That's 1.47% more than Slb Limited/Nv (SLB), which yields 2.28%. In dollar terms, CVX pays $6.84/share annually versus SLB's $1.14/share.
Dividend Growth
Over the past five years, SLB has grown its dividend at a 22.9% 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%). SLB: Dividend growth has been steady, with a 3-year CAGR of 23.3% and a 5-year CAGR of 22.9% (10-year: -3.0%).
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. SLB's dividend safety is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. CVX's payout ratio of 1% is more conservative than SLB's 49%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CVX generates approximately $375/year in dividend income, compared to $228/year from SLB — a difference of $147/year. At $100,000, that gap widens to $1470/year.
Verdict
- Best for income: CVX
- Best for growth: SLB
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, CVX or SLB?
Chevron Corp (CVX) has a higher dividend yield of 3.75% compared to Slb Limited/Nv (SLB) at 2.28%.
Is CVX or SLB a better dividend growth stock?
Slb Limited/Nv has the stronger dividend growth with a 5-year CAGR of 22.9%, compared to Chevron Corp's 6.5%.
Which is safer for dividend income, CVX or SLB?
Chevron Corp's dividend safety is rated "Safe" while Slb Limited/Nv 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 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
How much income does $10,000 in CVX vs SLB generate?
A $10,000 investment in CVX generates approximately $375/year in dividends, while the same amount in SLB generates about $228/year.
Is CVX or SLB a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat with 38 consecutive years of increases. Slb Limited/Nv does not currently qualify for aristocrat status.
Which has a lower payout ratio, CVX or SLB?
Chevron Corp has a lower payout ratio of 1% compared to Slb Limited/Nv's 49%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CVX vs SLB: which is better for retirement income?
It depends on your priorities. CVX for current income, SLB for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
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