DOV vs XOM: Dividend Yield, Growth & Safety Comparison
DOVER Corp (DOV) from Industrials and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. XOM offers a significantly higher 2.64% yield compared to DOV's 0.90%, a gap of 1.74%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus DOV's 1.0%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | DOV | XOM |
|---|
| Dividend Yield | 0.90% | 2.64% |
| Annual Dividend | $2.08 | $4.00 |
| 5-Year CAGR | 1.0% | 11.2% |
| Payout Ratio | 26% | 60% |
| Consecutive Years | 41 | 42 |
| Price | $231.16 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 1.74% more than DOVER Corp (DOV), which yields 0.90%. In dollar terms, XOM pays $4.00/share annually versus DOV's $2.08/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% CAGR compared to DOV's 1.0%. DOV: Dividend growth has been steady, with a 3-year CAGR of 1.0% and a 5-year CAGR of 1.0% (10-year: 4.5%). 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
DOV's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. 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. DOV's payout ratio of 26% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $90/year from DOV — a difference of $174/year. At $100,000, that gap widens to $1740/year.
Verdict
- Best for income: XOM
- Best for growth: XOM
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, DOV or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to DOVER Corp (DOV) at 0.90%.
Is DOV 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 DOVER Corp's 1.0%.
Which is safer for dividend income, DOV or XOM?
DOVER Corp's dividend safety is rated "Safe" while Exxon Mobil Corp is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. 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 DOV vs XOM generate?
A $10,000 investment in DOV generates approximately $90/year in dividends, while the same amount in XOM generates about $264/year.
Is DOV or XOM a Dividend Aristocrat?
DOVER Corp is a Dividend Aristocrat (41 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, DOV or XOM?
DOVER Corp has a lower payout ratio of 26% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOV vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, XOM for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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