EOG vs PSX: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | EOG | PSX |
|---|
| Dividend Yield | 3.50% | 3.02% |
| Annual Dividend | $3.94 | $4.75 |
| 5-Year CAGR | -1.8% | 7.0% |
| Payout Ratio | 38% | 44% |
| Consecutive Years | 0 | 13 |
| Price | $120.62 | $159.16 |
Yield Comparison
Eog Resources Inc (EOG) currently yields 3.50%, which is solid for the broader market. That's 0.48% more than Phillips 66 (PSX), which yields 3.02%. In dollar terms, EOG pays $3.94/share annually versus PSX's $4.75/share.
Dividend Growth
Over the past five years, PSX has grown its dividend at a 7.0% 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%. 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'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. PSX's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. EOG's payout ratio of 38% is more conservative than PSX's 44%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EOG generates approximately $350/year in dividend income, compared to $302/year from PSX — a difference of $48/year. At $100,000, that gap widens to $480/year.
Verdict
- Best for income: EOG
- Best for growth: PSX
- Best for safety: EOG
Frequently Asked Questions
Which has a higher dividend yield, EOG or PSX?
Eog Resources Inc (EOG) has a higher dividend yield of 3.50% compared to Phillips 66 (PSX) at 3.02%.
Is EOG or PSX a better dividend growth stock?
Phillips 66 has the stronger dividend growth with a 5-year CAGR of 7.0%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, EOG or PSX?
Eog Resources Inc's dividend safety is rated "Safe" while Phillips 66 is rated "Safe." 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 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in EOG vs PSX generate?
A $10,000 investment in EOG generates approximately $350/year in dividends, while the same amount in PSX generates about $302/year.
Is EOG or PSX a Dividend Aristocrat?
Phillips 66 is a Dividend Contender with 13 consecutive years of increases. Eog Resources Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, EOG or PSX?
Eog Resources Inc has a lower payout ratio of 38% compared to Phillips 66's 44%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EOG vs PSX: which is better for retirement income?
It depends on your priorities. EOG for current income, PSX for dividend growth, EOG for safety. Many retirement investors hold both for diversification.
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