PSX vs XOM: Dividend Yield, Growth & Safety Comparison
Phillips 66 (PSX) and Exxon Mobil Corp (XOM) are both in the Energy sector, making them natural rivals for dividend investors. PSX edges ahead on yield at 3.02% versus XOM's 2.64%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus PSX's 7.0%. Both stocks carry a "Safe" dividend safety rating. PSX is a Dividend Contender while XOM is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | PSX | XOM |
|---|
| Dividend Yield | 3.02% | 2.64% |
| Annual Dividend | $4.75 | $4.00 |
| 5-Year CAGR | 7.0% | 11.2% |
| Payout Ratio | 44% | 60% |
| Consecutive Years | 13 | 42 |
| Price | $159.16 | $148.59 |
Yield Comparison
Phillips 66 (PSX) currently yields 3.02%, which is solid for the broader market. That's 0.38% more than Exxon Mobil Corp (XOM), which yields 2.64%. In dollar terms, PSX pays $4.75/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 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%. 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
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. 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. PSX's payout ratio of 44% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PSX generates approximately $302/year in dividend income, compared to $264/year from XOM — a difference of $38/year. At $100,000, that gap widens to $380/year.
Verdict
- Best for income: PSX
- Best for growth: XOM
- Best for safety: PSX
Frequently Asked Questions
Which has a higher dividend yield, PSX or XOM?
Phillips 66 (PSX) has a higher dividend yield of 3.02% compared to Exxon Mobil Corp (XOM) at 2.64%.
Is PSX 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 Phillips 66's 7.0%.
Which is safer for dividend income, PSX or XOM?
Phillips 66's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in PSX vs XOM generate?
A $10,000 investment in PSX generates approximately $302/year in dividends, while the same amount in XOM generates about $264/year.
Is PSX or XOM a Dividend Aristocrat?
Phillips 66 is a Dividend Contender (13 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, PSX or XOM?
Phillips 66 has a lower payout ratio of 44% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PSX vs XOM: which is better for retirement income?
It depends on your priorities. PSX for current income, XOM for dividend growth, PSX for safety. Many retirement investors hold both for diversification.
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