CVX vs XOM: Dividend Yield, Growth & Safety Comparison
Chevron Corp (CVX) and Exxon Mobil Corp (XOM) are both in the Energy sector, making them natural rivals for dividend investors. CVX offers a significantly higher 3.75% yield compared to XOM's 2.64%, a gap of 1.11%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus CVX's 6.5%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | CVX | XOM |
|---|
| Dividend Yield | 3.75% | 2.64% |
| Annual Dividend | $6.84 | $4.00 |
| 5-Year CAGR | 6.5% | 11.2% |
| Payout Ratio | 1% | 60% |
| Consecutive Years | 38 | 42 |
| Price | $184.05 | $148.59 |
Yield Comparison
Chevron Corp (CVX) currently yields 3.75%, which is solid for the broader market. That's 1.11% more than Exxon Mobil Corp (XOM), which yields 2.64%. In dollar terms, CVX pays $6.84/share annually versus XOM's $4.00/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% 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%). XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. CVX's payout ratio of 1% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CVX generates approximately $375/year in dividend income, compared to $264/year from XOM — a difference of $111/year. At $100,000, that gap widens to $1110/year.
Verdict
- Best for income: CVX
- Best for growth: XOM
- Best for safety: CVX
Frequently Asked Questions
Which has a higher dividend yield, CVX or XOM?
Chevron Corp (CVX) has a higher dividend yield of 3.75% compared to Exxon Mobil Corp (XOM) at 2.64%.
Is CVX or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Chevron Corp's 6.5%.
Which is safer for dividend income, CVX or XOM?
Chevron Corp's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in CVX vs XOM generate?
A $10,000 investment in CVX generates approximately $375/year in dividends, while the same amount in XOM generates about $264/year.
Is CVX or XOM a Dividend Aristocrat?
Chevron Corp is a Dividend Aristocrat (38 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, CVX or XOM?
Chevron Corp has a lower payout ratio of 1% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CVX vs XOM: which is better for retirement income?
It depends on your priorities. CVX for current income, XOM for dividend growth, CVX for safety. Many retirement investors hold both for diversification.
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