OKE vs XOM: Dividend Yield, Growth & Safety Comparison
Oneok Inc /New/ (OKE) and Exxon Mobil Corp (XOM) are both in the Energy sector, making them natural rivals for dividend investors. OKE offers a significantly higher 4.94% yield compared to XOM's 2.64%, a gap of 2.30%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus OKE's 10.1%. XOM holds the edge in dividend safety with a "Safe" rating. XOM is a Dividend Aristocrat with 42 years of consecutive increases.
Key Metrics Comparison
| Metric | OKE | XOM |
|---|
| Dividend Yield | 4.94% | 2.64% |
| Annual Dividend | $4.12 | $4.00 |
| 5-Year CAGR | 10.1% | 11.2% |
| Payout Ratio | 75% | 60% |
| Consecutive Years | 0 | 42 |
| Price | $86.11 | $148.59 |
Yield Comparison
Oneok Inc /New/ (OKE) currently yields 4.94%, which is attractive for the broader market. That's 2.30% more than Exxon Mobil Corp (XOM), which yields 2.64%. In dollar terms, OKE pays $4.12/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 OKE's 10.1%. 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%. 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
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. 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. XOM's payout ratio of 60% 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 $264/year from XOM — a difference of $230/year. At $100,000, that gap widens to $2300/year.
Verdict
- Best for income: OKE
- Best for growth: XOM
- Best for safety: XOM
Frequently Asked Questions
Which has a higher dividend yield, OKE or XOM?
Oneok Inc /New/ (OKE) has a higher dividend yield of 4.94% compared to Exxon Mobil Corp (XOM) at 2.64%.
Is OKE 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 Oneok Inc /New/'s 10.1%.
Which is safer for dividend income, OKE or XOM?
Oneok Inc /New/'s dividend safety is rated "Moderate" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in OKE vs XOM generate?
A $10,000 investment in OKE generates approximately $494/year in dividends, while the same amount in XOM generates about $264/year.
Is OKE or XOM a Dividend Aristocrat?
Exxon Mobil Corp is a Dividend Aristocrat with 42 consecutive years of increases. Oneok Inc /New/ does not currently qualify for aristocrat status.
Which has a lower payout ratio, OKE or XOM?
Exxon Mobil Corp has a lower payout ratio of 60% compared to Oneok Inc /New/'s 75%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
OKE vs XOM: which is better for retirement income?
It depends on your priorities. OKE for current income, XOM for dividend growth, XOM for safety. Many retirement investors hold both for diversification.
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