ABBV vs PFE: Dividend Comparison
Dividend data as of
AbbVie Inc. (ABBV) and Pfizer Inc (PFE) are both in the Health Care sector, making them natural rivals for dividend investors. PFE offers a significantly higher 6.23% yield compared to ABBV's 2.92%, a gap of 3.31%. For dividend growth, ABBV leads with a 5-year CAGR of 13.9% versus PFE's 10.1%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
PFE yields 3.31% more than ABBV. In dollar terms, ABBV pays $6.65/share vs PFE's $1.72/share annually.
Dividend Growth
ABBV: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 13.9% and the 10-year rate of 16.1%.
PFE: Dividend growth is accelerating — the 3-year CAGR of 18.3% exceeds the 5-year rate of 10.1% and the 10-year rate of 8.1%.
Dividend Safety
ABBV: The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.4x.
PFE: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in ABBV vs PFE today?
At $231.90 per share, $10,000 buys about 43.1 shares of AbbVie Inc. (ABBV). Each share pays $6.65 per year in dividends, so the position starts out generating roughly $287 per year — about $24 a month.
At $27.80 per share, $10,000 buys about 359.8 shares of Pfizer Inc (PFE). Each share pays $1.72 per year in dividends, so the position starts out generating roughly $619 per year — about $52 a month.
PFE is the larger income stream from day one: $332 per year more on the same $10,000 invested.
What could $10,000 of ABBV or PFE income look like in 10 years?
AbbVie Inc. (ABBV) has raised its dividend about 13.9% a year over the past five years. If that pace held, the $292 per year that $10,000 generates today at the current 2.92% yield would reach $1,071 per year by 2036 — a 10.7% yield on the original cost.
Pfizer Inc (PFE) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $623 per year that $10,000 generates today at the current 6.23% yield would reach $1,632 per year by 2036 — a 16.3% yield on the original cost.
On those trailing rates, PFE pays more in 2036: $1,632 versus $1,071 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would ABBV's dividend growth overtake PFE's higher yield?
AbbVie Inc. (ABBV) yields less today (2.92% vs 6.23%) but has grown its dividend faster — 13.9% vs 10.1% a year over the past five years. If both trends continued, a $10,000 position in ABBV would start out-earning the same position in PFE around 2049 (roughly 23 years from now), paying about $5,803 per year at the crossover. Before that point, PFE pays more each year; after it, the gap compounds in ABBV's favor.
Can ABBV and PFE afford their dividends?
AbbVie Inc. (ABBV) earns $2.37 per share against $6.65 paid out in dividends — 0.4x coverage (a 3% payout ratio).
Pfizer Inc (PFE) earns $1.36 per share against $1.72 paid out in dividends — 0.8x coverage (a 1% payout ratio).
PFE'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 ABBV if earnings weaken.
Which fits an early-retirement income portfolio better, ABBV or PFE?
For income you need right now, Pfizer Inc (PFE) leads: $100,000 invested today pays about $519 a month at the current 6.23% yield, versus $243 a month from AbbVie Inc. (ABBV) at 2.92%.
With a decade or more before the income is needed, ABBV's faster dividend growth (13.9% vs 10.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
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 $1,428/yr in ABBV vs $2,987/yr in PFE 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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