EOG vs XOM: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | EOG | XOM |
|---|
| Dividend Yield | 3.50% | 2.64% |
| Annual Dividend | $3.94 | $4.00 |
| 5-Year CAGR | -1.8% | 11.2% |
| Payout Ratio | 38% | 60% |
| Consecutive Years | 0 | 42 |
| Price | $120.62 | $148.59 |
Yield Comparison
Eog Resources Inc (EOG) currently yields 3.50%, which is solid for the broader market. That's 0.86% more than Exxon Mobil Corp (XOM), which yields 2.64%. In dollar terms, EOG pays $3.94/share annually versus XOM's $4.00/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% 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%. 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'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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. EOG's payout ratio of 38% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in EOG generates approximately $350/year in dividend income, compared to $264/year from XOM — a difference of $86/year. At $100,000, that gap widens to $860/year.
Verdict
- Best for income: EOG
- Best for growth: XOM
- Best for safety: EOG
Frequently Asked Questions
Which has a higher dividend yield, EOG or XOM?
Eog Resources Inc (EOG) has a higher dividend yield of 3.50% compared to Exxon Mobil Corp (XOM) at 2.64%.
Is EOG or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Eog Resources Inc's -1.8%.
Which is safer for dividend income, EOG or XOM?
Eog Resources Inc's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in EOG vs XOM generate?
A $10,000 investment in EOG generates approximately $350/year in dividends, while the same amount in XOM generates about $264/year.
Is EOG or XOM a Dividend Aristocrat?
Exxon Mobil Corp is a Dividend Aristocrat with 42 consecutive years of increases. Eog Resources Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, EOG or XOM?
Eog Resources Inc has a lower payout ratio of 38% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EOG vs XOM: which is better for retirement income?
It depends on your priorities. EOG for current income, XOM for dividend growth, EOG for safety. Many retirement investors hold both for diversification.
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