KMI vs SLB: Dividend Comparison
Dividend data as of
Kinder Morgan, Inc. (KMI) and Slb Limited/Nv (SLB) are both in the Energy sector, making them natural rivals for dividend investors. KMI offers a significantly higher 3.77% yield compared to SLB's 2.28%, a gap of 1.49%. For dividend growth, SLB leads with a 5-year CAGR of 22.9% versus KMI's 9.6%. SLB holds the edge in dividend safety with a "Safe" rating.
Verdict
Yield Analysis
KMI yields 1.49% more than SLB. In dollar terms, KMI pays $1.17/share vs SLB's $1.14/share annually.
Dividend Growth
KMI: Dividend growth is accelerating — the 3-year CAGR of 17.2% exceeds the 5-year rate of 9.6% and the 10-year rate of 13.4%.
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
KMI: The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
SLB: The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in KMI vs SLB today?
At $32.20 per share, $10,000 buys about 310.6 shares of Kinder Morgan, Inc. (KMI). Each share pays $1.17 per year in dividends, so the position starts out generating roughly $363 per year — about $30 a month.
At $50.61 per share, $10,000 buys about 197.6 shares of Slb Limited/Nv (SLB). Each share pays $1.14 per year in dividends, so the position starts out generating roughly $225 per year — about $19 a month.
KMI is the larger income stream from day one: $138 per year more on the same $10,000 invested.
What could $10,000 of KMI or SLB income look like in 10 years?
Kinder Morgan, Inc. (KMI) has raised its dividend about 9.6% a year over the past five years. If that pace held, the $377 per year that $10,000 generates today at the current 3.77% yield would reach $940 per year by 2036 — a 9.4% yield on the original cost.
Slb Limited/Nv (SLB) has raised its dividend about 22.9% a year over the past five years. If that pace held, the $228 per year that $10,000 generates today at the current 2.28% yield would reach $1,789 per year by 2036 — a 17.9% yield on the original cost.
On those trailing rates, SLB pays more in 2036: $1,789 versus $940 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SLB's dividend growth overtake KMI's higher yield?
Slb Limited/Nv (SLB) yields less today (2.28% vs 3.77%) but has grown its dividend faster — 22.9% vs 9.6% a year over the past five years. If both trends continued, a $10,000 position in SLB would start out-earning the same position in KMI around 2031 (roughly 5 years from now), paying about $638 per year at the crossover. Before that point, KMI pays more each year; after it, the gap compounds in SLB's favor.
Can KMI and SLB afford their dividends?
Kinder Morgan, Inc. (KMI) earns $1.37 per share against $1.17 paid out in dividends — 1.2x coverage (a 85% payout ratio).
Slb Limited/Nv (SLB) earns $2.35 per share against $1.14 paid out in dividends — 2.1x coverage (a 49% payout ratio).
SLB'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 KMI if earnings weaken.
Which fits an early-retirement income portfolio better, KMI or SLB?
For income you need right now, Kinder Morgan, Inc. (KMI) leads: $100,000 invested today pays about $314 a month at the current 3.77% yield, versus $190 a month from Slb Limited/Nv (SLB) at 2.28%.
With a decade or more before the income is needed, SLB's faster dividend growth (22.9% vs 9.6% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: SLB has raised its dividend 4 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 $1,362/yr in KMI vs $2,241/yr in SLB 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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