EOG vs OKE: Dividend Yield, Growth & Safety Comparison
Eog Resources Inc (EOG) and Oneok Inc /New/ (OKE) are both in the Energy sector, making them natural rivals for dividend investors. OKE offers a significantly higher 4.94% yield compared to EOG's 3.50%, a gap of 1.44%. For dividend growth, OKE leads with a 5-year CAGR of 10.1% versus EOG's -1.8%. EOG holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | EOG | OKE |
|---|
| Dividend Yield | 3.50% | 4.94% |
| Annual Dividend | $3.94 | $4.12 |
| 5-Year CAGR | -1.8% | 10.1% |
| Payout Ratio | 38% | 75% |
| Consecutive Years | 0 | 0 |
| Price | $120.62 | $86.11 |
Yield Comparison
Oneok Inc /New/ (OKE) currently yields 4.94%, which is attractive for the broader market. That's 1.44% more than Eog Resources Inc (EOG), which yields 3.50%. In dollar terms, OKE pays $4.12/share annually versus EOG's $3.94/share.
Dividend Growth
Over the past five years, OKE has grown its dividend at a 10.1% 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%. OKE: Dividend growth is accelerating — the 3-year CAGR of 19.9% exceeds the 5-year rate of 10.1% and the 10-year rate of 9.3%.
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. OKE's dividend safety is rated "Moderate." The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. EOG's payout ratio of 38% is more conservative than OKE's 75%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in OKE generates approximately $494/year in dividend income, compared to $350/year from EOG — a difference of $144/year. At $100,000, that gap widens to $1440/year.
Verdict
- Best for income: OKE
- Best for growth: OKE
- Best for safety: EOG
Frequently Asked Questions
Which has a higher dividend yield, EOG or OKE?
Oneok Inc /New/ (OKE) has a higher dividend yield of 4.94% compared to Eog Resources Inc (EOG) at 3.50%.
Is EOG or OKE a better dividend growth stock?
Oneok Inc /New/ has the stronger dividend growth with a 5-year CAGR of 10.1%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, EOG or OKE?
Eog Resources Inc's dividend safety is rated "Safe" while Oneok Inc /New/ is rated "Moderate." 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 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
How much income does $10,000 in EOG vs OKE generate?
A $10,000 investment in EOG generates approximately $350/year in dividends, while the same amount in OKE generates about $494/year.
Which has a lower payout ratio, EOG or OKE?
Eog Resources Inc has a lower payout ratio of 38% compared to Oneok Inc /New/'s 75%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EOG vs OKE: which is better for retirement income?
It depends on your priorities. OKE for current income, OKE for dividend growth, EOG for safety. Many retirement investors hold both for diversification.
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