SLB vs XOM: Dividend Yield, Growth & Safety Comparison
Slb Limited/Nv (SLB) and Exxon Mobil Corp (XOM) are both in the Energy sector, making them natural rivals for dividend investors. XOM edges ahead on yield at 2.64% versus SLB's 2.28%. For dividend growth, SLB leads with a 5-year CAGR of 22.9% versus XOM's 11.2%. Both stocks carry a "Safe" dividend safety rating. XOM is a Dividend Aristocrat with 42 years of consecutive increases.
Key Metrics Comparison
| Metric | SLB | XOM |
|---|
| Dividend Yield | 2.28% | 2.64% |
| Annual Dividend | $1.14 | $4.00 |
| 5-Year CAGR | 22.9% | 11.2% |
| Payout Ratio | 49% | 60% |
| Consecutive Years | 4 | 42 |
| Price | $50.61 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 0.36% more than Slb Limited/Nv (SLB), which yields 2.28%. In dollar terms, XOM pays $4.00/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 XOM's 11.2%. 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%). 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
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. 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. SLB's payout ratio of 49% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $228/year from SLB — a difference of $36/year. At $100,000, that gap widens to $360/year.
Verdict
- Best for income: XOM
- Best for growth: SLB
- Best for safety: SLB
Frequently Asked Questions
Which has a higher dividend yield, SLB or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to Slb Limited/Nv (SLB) at 2.28%.
Is SLB or XOM a better dividend growth stock?
Slb Limited/Nv has the stronger dividend growth with a 5-year CAGR of 22.9%, compared to Exxon Mobil Corp's 11.2%.
Which is safer for dividend income, SLB or XOM?
Slb Limited/Nv's dividend safety is rated "Safe" while Exxon Mobil Corp is rated "Safe." The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. 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 SLB vs XOM generate?
A $10,000 investment in SLB generates approximately $228/year in dividends, while the same amount in XOM generates about $264/year.
Is SLB or XOM a Dividend Aristocrat?
Exxon Mobil Corp is a Dividend Aristocrat with 42 consecutive years of increases. Slb Limited/Nv does not currently qualify for aristocrat status.
Which has a lower payout ratio, SLB or XOM?
Slb Limited/Nv has a lower payout ratio of 49% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
SLB vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, SLB for dividend growth, SLB for safety. Many retirement investors hold both for diversification.
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