EOG vs KMI: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
KMI yields 0.27% more than EOG. In dollar terms, EOG pays $3.94/share vs KMI's $1.17/share annually.
Dividend Growth
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: The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.
KMI: The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in EOG vs KMI today?
At $120.62 per share, $10,000 buys about 82.9 shares of Eog Resources Inc (EOG). Each share pays $3.94 per year in dividends, so the position starts out generating roughly $327 per year — about $27 a month.
At $32.20 per share, $10,000 buys about 310.6 shares of Kinder Morgan, Inc. (KMI). Each share pays $1.17 per year in dividends, so the position starts out generating roughly $363 per year — about $30 a month.
KMI is the larger income stream from day one: $36 per year more on the same $10,000 invested.
What could $10,000 of EOG or KMI income look like in 10 years?
Eog Resources Inc (EOG)'s dividend has shrunk about 1.8% a year over the past five years. If that trend continued, today's $350 per year on $10,000 (at the current 3.50% yield) would fall to $292 per year by 2036.
Kinder Morgan, Inc. (KMI) has raised its dividend about 9.6% a year over the past five years. If that pace held, the $377 per year that $10,000 generates today at the current 3.77% yield would reach $940 per year by 2036 — a 9.4% yield on the original cost.
On those trailing rates, KMI pays more in 2036: $940 versus $292 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would EOG's dividend growth overtake KMI's higher yield?
It doesn't, on the trailing numbers. Kinder Morgan, Inc. (KMI) yields more today (3.77% vs 3.50%) and has also grown its dividend at least as fast (9.6% vs -1.8% a year over five years). Unless EOG accelerates its raises or KMI stumbles, EOG never closes the income gap — KMI wins on both current income and growth.
Can EOG and KMI afford their dividends?
Eog Resources Inc (EOG) earns $10.07 per share against $3.94 paid out in dividends — 2.6x coverage (a 38% payout ratio).
Kinder Morgan, Inc. (KMI) earns $1.37 per share against $1.17 paid out in dividends — 1.2x coverage (a 85% payout ratio).
EOG's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for KMI if earnings weaken.
Which fits an early-retirement income portfolio better, EOG or KMI?
For income you need right now, Kinder Morgan, Inc. (KMI) leads: $100,000 invested today pays about $314 a month at the current 3.77% yield, versus $292 a month from Eog Resources Inc (EOG) at 3.50%.
KMI also leads on dividend growth (9.6% vs -1.8% a year over five years), so the trailing numbers favor it on both fronts.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $413/yr in EOG vs $1,362/yr in KMI by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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