EOG vs SLB: Dividend Yield, Growth & Safety Comparison
Eog Resources Inc (EOG) and Slb Limited/Nv (SLB) are both in the Energy sector, making them natural rivals for dividend investors. EOG offers a significantly higher 3.50% yield compared to SLB's 2.28%, a gap of 1.22%. For dividend growth, SLB leads with a 5-year CAGR of 22.9% versus EOG's -1.8%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | EOG | SLB |
|---|
| Dividend Yield | 3.50% | 2.28% |
| Annual Dividend | $3.94 | $1.14 |
| 5-Year CAGR | -1.8% | 22.9% |
| Payout Ratio | 38% | 49% |
| Consecutive Years | 0 | 4 |
| Price | $120.62 | $50.61 |
Yield Comparison
Eog Resources Inc (EOG) currently yields 3.50%, which is solid for the broader market. That's 1.22% more than Slb Limited/Nv (SLB), which yields 2.28%. In dollar terms, EOG pays $3.94/share annually versus SLB's $1.14/share.
Dividend Growth
Over the past five years, SLB has grown its dividend at a 22.9% 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%. SLB: Dividend growth has been steady, with a 3-year CAGR of 23.3% and a 5-year CAGR of 22.9% (10-year: -3.0%).
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. SLB's dividend safety is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. EOG's payout ratio of 38% is more conservative than SLB's 49%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EOG generates approximately $350/year in dividend income, compared to $228/year from SLB — a difference of $122/year. At $100,000, that gap widens to $1220/year.
Verdict
- Best for income: EOG
- Best for growth: SLB
- Best for safety: EOG
Frequently Asked Questions
Which has a higher dividend yield, EOG or SLB?
Eog Resources Inc (EOG) has a higher dividend yield of 3.50% compared to Slb Limited/Nv (SLB) at 2.28%.
Is EOG or SLB a better dividend growth stock?
Slb Limited/Nv has the stronger dividend growth with a 5-year CAGR of 22.9%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, EOG or SLB?
Eog Resources Inc's dividend safety is rated "Safe" while Slb Limited/Nv 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 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
How much income does $10,000 in EOG vs SLB generate?
A $10,000 investment in EOG generates approximately $350/year in dividends, while the same amount in SLB generates about $228/year.
Which has a lower payout ratio, EOG or SLB?
Eog Resources Inc has a lower payout ratio of 38% compared to Slb Limited/Nv's 49%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EOG vs SLB: which is better for retirement income?
It depends on your priorities. EOG for current income, SLB for dividend growth, EOG for safety. Many retirement investors hold both for diversification.
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