OKE vs PSX: Dividend Yield, Growth & Safety Comparison
Oneok Inc /New/ (OKE) and Phillips 66 (PSX) are both in the Energy sector, making them natural rivals for dividend investors. OKE offers a significantly higher 4.94% yield compared to PSX's 3.02%, a gap of 1.92%. For dividend growth, OKE leads with a 5-year CAGR of 10.1% versus PSX's 7.0%. PSX holds the edge in dividend safety with a "Safe" rating. PSX is a Dividend Contender with 13 years of consecutive increases.
Key Metrics Comparison
| Metric | OKE | PSX |
|---|
| Dividend Yield | 4.94% | 3.02% |
| Annual Dividend | $4.12 | $4.75 |
| 5-Year CAGR | 10.1% | 7.0% |
| Payout Ratio | 75% | 44% |
| Consecutive Years | 0 | 13 |
| Price | $86.11 | $159.16 |
Yield Comparison
Oneok Inc /New/ (OKE) currently yields 4.94%, which is attractive for the broader market. That's 1.92% more than Phillips 66 (PSX), which yields 3.02%. In dollar terms, OKE pays $4.12/share annually versus PSX's $4.75/share.
Dividend Growth
Over the past five years, OKE has grown its dividend at a 10.1% CAGR compared to PSX's 7.0%. OKE: Dividend growth is accelerating — the 3-year CAGR of 19.9% exceeds the 5-year rate of 10.1% and the 10-year rate of 9.3%. PSX: Dividend growth is slowing — the 3-year CAGR of 6.3% trails the 5-year rate of 7.0% and the 10-year rate of 10.8%.
Dividend Safety
OKE's dividend safety is rated "Moderate." The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. PSX's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. PSX's payout ratio of 44% is more conservative than OKE's 75%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in OKE generates approximately $494/year in dividend income, compared to $302/year from PSX — a difference of $192/year. At $100,000, that gap widens to $1920/year.
Verdict
- Best for income: OKE
- Best for growth: OKE
- Best for safety: PSX
Frequently Asked Questions
Which has a higher dividend yield, OKE or PSX?
Oneok Inc /New/ (OKE) has a higher dividend yield of 4.94% compared to Phillips 66 (PSX) at 3.02%.
Is OKE or PSX a better dividend growth stock?
Oneok Inc /New/ has the stronger dividend growth with a 5-year CAGR of 10.1%, compared to Phillips 66's 7.0%.
Which is safer for dividend income, OKE or PSX?
Oneok Inc /New/'s dividend safety is rated "Moderate" while Phillips 66 is rated "Safe." The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in OKE vs PSX generate?
A $10,000 investment in OKE generates approximately $494/year in dividends, while the same amount in PSX generates about $302/year.
Is OKE or PSX a Dividend Aristocrat?
Phillips 66 is a Dividend Contender with 13 consecutive years of increases. Oneok Inc /New/ does not currently qualify for aristocrat status.
Which has a lower payout ratio, OKE or PSX?
Phillips 66 has a lower payout ratio of 44% compared to Oneok Inc /New/'s 75%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
OKE vs PSX: which is better for retirement income?
It depends on your priorities. OKE for current income, OKE for dividend growth, PSX for safety. Many retirement investors hold both for diversification.
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