KMI vs SLB: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | KMI | SLB |
|---|
| Dividend Yield | 3.77% | 2.28% |
| Annual Dividend | $1.17 | $1.14 |
| 5-Year CAGR | 9.6% | 22.9% |
| Payout Ratio | 85% | 49% |
| Consecutive Years | 0 | 4 |
| Price | $32.20 | $50.61 |
Yield Comparison
Kinder Morgan, Inc. (KMI) currently yields 3.77%, which is solid for the broader market. That's 1.49% more than Slb Limited/Nv (SLB), which yields 2.28%. In dollar terms, KMI pays $1.17/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 KMI's 9.6%. 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's dividend safety is rated "At Risk." 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'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. SLB's payout ratio of 49% is more conservative than KMI's 85%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in KMI generates approximately $377/year in dividend income, compared to $228/year from SLB — a difference of $149/year. At $100,000, that gap widens to $1490/year.
Verdict
- Best for income: KMI
- Best for growth: SLB
- Best for safety: SLB
Frequently Asked Questions
Which has a higher dividend yield, KMI or SLB?
Kinder Morgan, Inc. (KMI) has a higher dividend yield of 3.77% compared to Slb Limited/Nv (SLB) at 2.28%.
Is KMI 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 Kinder Morgan, Inc.'s 9.6%.
Which is safer for dividend income, KMI or SLB?
Kinder Morgan, Inc.'s dividend safety is rated "At Risk" while Slb Limited/Nv is rated "Safe." The payout ratio of 85% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x. 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 KMI vs SLB generate?
A $10,000 investment in KMI generates approximately $377/year in dividends, while the same amount in SLB generates about $228/year.
Which has a lower payout ratio, KMI or SLB?
Slb Limited/Nv has a lower payout ratio of 49% compared to Kinder Morgan, Inc.'s 85%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
KMI vs SLB: which is better for retirement income?
It depends on your priorities. KMI for current income, SLB for dividend growth, SLB for safety. Many retirement investors hold both for diversification.
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