ABBV vs PFE: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | ABBV | PFE |
|---|
| Dividend Yield | 2.92% | 6.23% |
| Annual Dividend | $6.65 | $1.72 |
| 5-Year CAGR | 13.9% | 10.1% |
| Payout Ratio | 3% | 1% |
| Consecutive Years | 0 | 0 |
| Price | $231.90 | $27.80 |
Yield Comparison
Pfizer Inc (PFE) currently yields 6.23%, which is attractive for the broader market. That's 3.31% more than AbbVie Inc. (ABBV), which yields 2.92%. In dollar terms, PFE pays $1.72/share annually versus ABBV's $6.65/share.
Dividend Growth
Over the past five years, ABBV has grown its dividend at a 13.9% CAGR compared to PFE's 10.1%. 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's dividend safety is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.4x. PFE's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. Both have similar payout ratios — ABBV at 3% and PFE at 1%.
Income Comparison
A $10,000 investment in PFE generates approximately $623/year in dividend income, compared to $292/year from ABBV — a difference of $331/year. At $100,000, that gap widens to $3310/year.
Verdict
- Best for income: PFE
- Best for growth: ABBV
Frequently Asked Questions
Which has a higher dividend yield, ABBV or PFE?
Pfizer Inc (PFE) has a higher dividend yield of 6.23% compared to AbbVie Inc. (ABBV) at 2.92%.
Is ABBV or PFE a better dividend growth stock?
AbbVie Inc. has the stronger dividend growth with a 5-year CAGR of 13.9%, compared to Pfizer Inc's 10.1%.
Which is safer for dividend income, ABBV or PFE?
AbbVie Inc.'s dividend safety is rated "Safe" while Pfizer Inc is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.4x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in ABBV vs PFE generate?
A $10,000 investment in ABBV generates approximately $292/year in dividends, while the same amount in PFE generates about $623/year.
Which has a lower payout ratio, ABBV or PFE?
Pfizer Inc has a lower payout ratio of 1% compared to AbbVie Inc.'s 3%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ABBV vs PFE: which is better for retirement income?
It depends on your priorities. PFE for current income, ABBV for dividend growth. Many retirement investors hold both for diversification.
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