EOG vs KMI: Dividend Yield, Growth & Safety Comparison
Eog Resources Inc (EOG) and Kinder Morgan, Inc. (KMI) are both in the Energy sector, making them natural rivals for dividend investors. Both stocks offer similar yields — EOG at 3.50% and KMI at 3.77%. For dividend growth, KMI leads with a 5-year CAGR of 9.6% versus EOG's -1.8%. EOG holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | EOG | KMI |
|---|
| Dividend Yield | 3.50% | 3.77% |
| Annual Dividend | $3.94 | $1.17 |
| 5-Year CAGR | -1.8% | 9.6% |
| Payout Ratio | 38% | 85% |
| Consecutive Years | 0 | 0 |
| Price | $120.62 | $32.20 |
Yield Comparison
Kinder Morgan, Inc. (KMI) currently yields 3.77%, which is solid for the broader market. That's 0.27% more than Eog Resources Inc (EOG), which yields 3.50%. In dollar terms, KMI pays $1.17/share annually versus EOG's $3.94/share.
Dividend Growth
Over the past five years, KMI has grown its dividend at a 9.6% CAGR compared to EOG's -1.8%. EOG: Dividend growth is slowing — the 3-year CAGR of -10.9% trails the 5-year rate of -1.8% and the 10-year rate of 25.7%. KMI: Dividend growth is accelerating — the 3-year CAGR of 17.2% exceeds the 5-year rate of 9.6% and the 10-year rate of 13.4%.
Dividend Safety
EOG's dividend safety is rated "Safe." The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x. KMI's dividend safety is rated "At Risk." The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. EOG's payout ratio of 38% is more conservative than KMI's 85%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in KMI generates approximately $377/year in dividend income, compared to $350/year from EOG — a difference of $27/year. At $100,000, that gap widens to $270/year.
Verdict
- Best for income: KMI
- Best for growth: KMI
- Best for safety: EOG
Frequently Asked Questions
Which has a higher dividend yield, EOG or KMI?
Kinder Morgan, Inc. (KMI) has a higher dividend yield of 3.77% compared to Eog Resources Inc (EOG) at 3.50%.
Is EOG or KMI a better dividend growth stock?
Kinder Morgan, Inc. has the stronger dividend growth with a 5-year CAGR of 9.6%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, EOG or KMI?
Eog Resources Inc's dividend safety is rated "Safe" while Kinder Morgan, Inc. is rated "At Risk." The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x. The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
How much income does $10,000 in EOG vs KMI generate?
A $10,000 investment in EOG generates approximately $350/year in dividends, while the same amount in KMI generates about $377/year.
Which has a lower payout ratio, EOG or KMI?
Eog Resources Inc has a lower payout ratio of 38% compared to Kinder Morgan, Inc.'s 85%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EOG vs KMI: which is better for retirement income?
It depends on your priorities. KMI for current income, KMI for dividend growth, EOG for safety. Many retirement investors hold both for diversification.
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