OKE vs XOM: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
OKE yields 2.30% more than XOM. In dollar terms, OKE pays $4.12/share vs XOM's $4.00/share annually.
Dividend Growth
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: 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: The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in OKE vs XOM today?
At $86.11 per share, $10,000 buys about 116.1 shares of Oneok Inc /New/ (OKE). Each share pays $4.12 per year in dividends, so the position starts out generating roughly $478 per year — about $40 a month.
At $148.59 per share, $10,000 buys about 67.3 shares of Exxon Mobil Corp (XOM). Each share pays $4.00 per year in dividends, so the position starts out generating roughly $269 per year — about $22 a month.
OKE is the larger income stream from day one: $209 per year more on the same $10,000 invested.
What could $10,000 of OKE or XOM income look like in 10 years?
Oneok Inc /New/ (OKE) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $494 per year that $10,000 generates today at the current 4.94% yield would reach $1,291 per year by 2036 — a 12.9% yield on the original cost.
Exxon Mobil Corp (XOM) has raised its dividend about 11.2% a year over the past five years. If that pace held, the $264 per year that $10,000 generates today at the current 2.64% yield would reach $760 per year by 2036 — a 7.6% yield on the original cost.
On those trailing rates, OKE pays more in 2036: $1,291 versus $760 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would XOM's dividend growth overtake OKE's higher yield?
Not within a realistic holding period. Exxon Mobil Corp (XOM) is growing its dividend faster (11.2% vs 10.1% a year), but the starting-yield gap — 4.94% for OKE vs 2.64% for XOM — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, OKE's head start is decisive.
Can OKE and XOM afford their dividends?
Oneok Inc /New/ (OKE) earns $5.44 per share against $4.12 paid out in dividends — 1.3x coverage (a 75% payout ratio).
Exxon Mobil Corp (XOM) earns $6.70 per share against $4.00 paid out in dividends — 1.7x coverage (a 60% payout ratio).
XOM'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 OKE if earnings weaken.
Which fits an early-retirement income portfolio better, OKE or XOM?
For income you need right now, Oneok Inc /New/ (OKE) leads: $100,000 invested today pays about $411 a month at the current 4.94% yield, versus $220 a month from Exxon Mobil Corp (XOM) at 2.64%.
With a decade or more before the income is needed, XOM's faster dividend growth (11.2% vs 10.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: XOM has raised its dividend 42 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 $2,090/yr in OKE vs $986/yr in XOM 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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