EOG vs XOM: Dividend Comparison
Dividend data as of
Eog Resources Inc (EOG) and Exxon Mobil Corp (XOM) are both in the Energy sector, making them natural rivals for dividend investors. EOG edges ahead on yield at 3.50% versus XOM's 2.64%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus EOG's -1.8%. Both stocks carry a "Safe" dividend safety rating. XOM is a Dividend Aristocrat with 42 years of consecutive increases.
Verdict
Yield Analysis
EOG yields 0.86% more than XOM. In dollar terms, EOG pays $3.94/share vs XOM's $4.00/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%.
XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
Dividend Safety
EOG: The payout ratio of 38% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.6x.
XOM: The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in EOG vs XOM 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 $148.59 per share, $10,000 buys about 67.3 shares of Exxon Mobil Corp (XOM). Each share pays $4.00 per year in dividends, so the position starts out generating roughly $269 per year — about $22 a month.
EOG is the larger income stream from day one: $58 per year more on the same $10,000 invested.
What could $10,000 of EOG or XOM 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.
Exxon Mobil Corp (XOM) has raised its dividend about 11.2% a year over the past five years. If that pace held, the $264 per year that $10,000 generates today at the current 2.64% yield would reach $760 per year by 2036 — a 7.6% yield on the original cost.
On those trailing rates, XOM pays more in 2036: $760 versus $292 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would XOM's dividend growth overtake EOG's higher yield?
Exxon Mobil Corp (XOM) yields less today (2.64% vs 3.50%) but has grown its dividend faster — 11.2% vs -1.8% a year over the past five years. If both trends continued, a $10,000 position in XOM would start out-earning the same position in EOG around 2029 (roughly 3 years from now), paying about $362 per year at the crossover. Before that point, EOG pays more each year; after it, the gap compounds in XOM's favor.
Can EOG and XOM 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).
Exxon Mobil Corp (XOM) earns $6.70 per share against $4.00 paid out in dividends — 1.7x coverage (a 60% 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 XOM if earnings weaken.
Which fits an early-retirement income portfolio better, EOG or XOM?
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 $220 a month from Exxon Mobil Corp (XOM) at 2.64%.
With a decade or more before the income is needed, XOM's faster dividend growth (11.2% vs -1.8% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: XOM has raised its dividend 42 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 $986/yr in XOM 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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