PSX vs SLB: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | PSX | SLB |
|---|
| Dividend Yield | 3.02% | 2.28% |
| Annual Dividend | $4.75 | $1.14 |
| 5-Year CAGR | 7.0% | 22.9% |
| Payout Ratio | 44% | 49% |
| Consecutive Years | 13 | 4 |
| Price | $159.16 | $50.61 |
Yield Comparison
Phillips 66 (PSX) currently yields 3.02%, which is solid for the broader market. That's 0.74% more than Slb Limited/Nv (SLB), which yields 2.28%. In dollar terms, PSX pays $4.75/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 PSX's 7.0%. 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'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. 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. Both have similar payout ratios — PSX at 44% and SLB at 49%.
Income Comparison
A $10,000 investment in PSX generates approximately $302/year in dividend income, compared to $228/year from SLB — a difference of $74/year. At $100,000, that gap widens to $740/year.
Verdict
- Best for income: PSX
- Best for growth: SLB
- Best for safety: PSX
Frequently Asked Questions
Which has a higher dividend yield, PSX or SLB?
Phillips 66 (PSX) has a higher dividend yield of 3.02% compared to Slb Limited/Nv (SLB) at 2.28%.
Is PSX 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 Phillips 66's 7.0%.
Which is safer for dividend income, PSX or SLB?
Phillips 66's dividend safety is rated "Safe" while Slb Limited/Nv is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. 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 PSX vs SLB generate?
A $10,000 investment in PSX generates approximately $302/year in dividends, while the same amount in SLB generates about $228/year.
Is PSX or SLB a Dividend Aristocrat?
Phillips 66 is a Dividend Contender with 13 consecutive years of increases. Slb Limited/Nv does not currently qualify for aristocrat status.
Which has a lower payout ratio, PSX or SLB?
Phillips 66 has a lower payout ratio of 44% compared to Slb Limited/Nv's 49%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PSX vs SLB: which is better for retirement income?
It depends on your priorities. PSX for current income, SLB for dividend growth, PSX for safety. Many retirement investors hold both for diversification.
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