PSX vs SLB: Dividend Comparison
Dividend data as of
Phillips 66 (PSX) and Slb Limited/Nv (SLB) are both in the Energy sector, making them natural rivals for dividend investors. PSX edges ahead on yield at 3.02% versus SLB's 2.28%. For dividend growth, SLB leads with a 5-year CAGR of 22.9% versus PSX's 7.0%. Both stocks carry a "Safe" dividend safety rating. PSX is a Dividend Contender with 13 years of consecutive increases.
Verdict
Yield Analysis
PSX yields 0.74% more than SLB. In dollar terms, PSX pays $4.75/share vs SLB's $1.14/share annually.
Dividend Growth
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%.
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
PSX: The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
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 PSX vs SLB today?
At $159.16 per share, $10,000 buys about 62.8 shares of Phillips 66 (PSX). Each share pays $4.75 per year in dividends, so the position starts out generating roughly $298 per year — about $25 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.
PSX is the larger income stream from day one: $73 per year more on the same $10,000 invested.
What could $10,000 of PSX or SLB income look like in 10 years?
Phillips 66 (PSX) has raised its dividend about 7.0% a year over the past five years. If that pace held, the $302 per year that $10,000 generates today at the current 3.02% yield would reach $596 per year by 2036 — a 6.0% 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 $596 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 PSX's higher yield?
Slb Limited/Nv (SLB) yields less today (2.28% vs 3.02%) but has grown its dividend faster — 22.9% vs 7.0% 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 PSX around 2029 (roughly 3 years from now), paying about $423 per year at the crossover. Before that point, PSX pays more each year; after it, the gap compounds in SLB's favor.
Can PSX and SLB afford their dividends?
Phillips 66 (PSX) earns $10.79 per share against $4.75 paid out in dividends — 2.3x coverage (a 44% 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).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, PSX or SLB?
For income you need right now, Phillips 66 (PSX) leads: $100,000 invested today pays about $252 a month at the current 3.02% 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 7.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: PSX has raised its dividend 13 consecutive years; 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 $802/yr in PSX 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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