EOG vs PSX: Dividend Comparison
Dividend data as of
Eog Resources Inc (EOG) and Phillips 66 (PSX) are both in the Energy sector, making them natural rivals for dividend investors. EOG edges ahead on yield at 3.50% versus PSX's 3.02%. For dividend growth, PSX leads with a 5-year CAGR of 7.0% versus EOG's -1.8%. Both stocks carry a "Safe" dividend safety rating. PSX is a Dividend Contender with 13 years of consecutive increases.
Verdict
Yield Analysis
EOG yields 0.48% more than PSX. In dollar terms, EOG pays $3.94/share vs PSX's $4.75/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%.
PSX: Dividend growth is slowing — the 3-year CAGR of 6.3% trails the 5-year rate of 7.0% and the 10-year rate of 10.8%.
Dividend Safety
EOG: The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.
PSX: The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in EOG vs PSX 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 $159.16 per share, $10,000 buys about 62.8 shares of Phillips 66 (PSX). Each share pays $4.75 per year in dividends, so the position starts out generating roughly $298 per year — about $25 a month.
EOG is the larger income stream from day one: $29 per year more on the same $10,000 invested.
What could $10,000 of EOG or PSX 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.
Phillips 66 (PSX) has raised its dividend about 7.0% a year over the past five years. If that pace held, the $302 per year that $10,000 generates today at the current 3.02% yield would reach $596 per year by 2036 — a 6.0% yield on the original cost.
On those trailing rates, PSX pays more in 2036: $596 versus $292 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would PSX's dividend growth overtake EOG's higher yield?
Phillips 66 (PSX) yields less today (3.02% vs 3.50%) but has grown its dividend faster — 7.0% vs -1.8% a year over the past five years. If both trends continued, a $10,000 position in PSX would start out-earning the same position in EOG around 2028 (roughly 2 years from now), paying about $346 per year at the crossover. Before that point, EOG pays more each year; after it, the gap compounds in PSX's favor.
Can EOG and PSX 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).
Phillips 66 (PSX) earns $10.79 per share against $4.75 paid out in dividends — 2.3x coverage (a 44% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, EOG or PSX?
For income you need right now, Eog Resources Inc (EOG) leads: $100,000 invested today pays about $292 a month at the current 3.50% yield, versus $252 a month from Phillips 66 (PSX) at 3.02%.
With a decade or more before the income is needed, PSX's faster dividend growth (7.0% vs -1.8% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: PSX has raised its dividend 13 consecutive years.
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 $802/yr in PSX 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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