AMGN vs BMY: Dividend Comparison
Dividend data as of
Amgen Inc (AMGN) and Bristol Myers Squibb Co (BMY) are both in the Health Care sector, making them natural rivals for dividend investors. BMY offers a significantly higher 4.09% yield compared to AMGN's 2.61%, a gap of 1.48%. For dividend growth, AMGN leads with a 5-year CAGR of 15.9% versus BMY's 14.0%. Both stocks carry a "Moderate" dividend safety rating. AMGN is a Dividend Contender with 14 years of consecutive increases.
Verdict
Yield Analysis
BMY yields 1.48% more than AMGN. In dollar terms, AMGN pays $9.52/share vs BMY's $2.49/share annually.
Dividend Growth
AMGN: Dividend growth is slowing — the 3-year CAGR of 5.7% trails the 5-year rate of 15.9% and the 10-year rate of 13.7%.
BMY: Dividend growth is accelerating — the 3-year CAGR of 20.4% exceeds the 5-year rate of 14.0% and the 10-year rate of 9.0%.
Dividend Safety
AMGN: The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
BMY: The payout ratio of 72% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AMGN vs BMY today?
At $369.70 per share, $10,000 buys about 27.0 shares of Amgen Inc (AMGN). Each share pays $9.52 per year in dividends, so the position starts out generating roughly $258 per year — about $21 a month.
At $60.77 per share, $10,000 buys about 164.5 shares of Bristol Myers Squibb Co (BMY). Each share pays $2.49 per year in dividends, so the position starts out generating roughly $410 per year — about $34 a month.
BMY is the larger income stream from day one: $152 per year more on the same $10,000 invested.
What could $10,000 of AMGN or BMY income look like in 10 years?
Amgen Inc (AMGN) has raised its dividend about 15.9% a year over the past five years. If that pace held, the $261 per year that $10,000 generates today at the current 2.61% yield would reach $1,140 per year by 2036 — a 11.4% yield on the original cost.
Bristol Myers Squibb Co (BMY) has raised its dividend about 14.0% a year over the past five years. If that pace held, the $409 per year that $10,000 generates today at the current 4.09% yield would reach $1,513 per year by 2036 — a 15.1% yield on the original cost.
On those trailing rates, BMY pays more in 2036: $1,513 versus $1,140 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would AMGN's dividend growth overtake BMY's higher yield?
Amgen Inc (AMGN) yields less today (2.61% vs 4.09%) but has grown its dividend faster — 15.9% vs 14.0% a year over the past five years. If both trends continued, a $10,000 position in AMGN would start out-earning the same position in BMY around 2054 (roughly 28 years from now), paying about $16,181 per year at the crossover. Before that point, BMY pays more each year; after it, the gap compounds in AMGN's favor.
Can AMGN and BMY afford their dividends?
Amgen Inc (AMGN) earns $14.24 per share against $9.52 paid out in dividends — 1.5x coverage (a 67% payout ratio).
Bristol Myers Squibb Co (BMY) earns $3.46 per share against $2.49 paid out in dividends — 1.4x coverage (a 72% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, AMGN or BMY?
For income you need right now, Bristol Myers Squibb Co (BMY) leads: $100,000 invested today pays about $341 a month at the current 4.09% yield, versus $218 a month from Amgen Inc (AMGN) at 2.61%.
With a decade or more before the income is needed, AMGN's faster dividend growth (15.9% vs 14.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: AMGN has raised its dividend 14 consecutive years.
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 $1,475/yr in AMGN vs $2,259/yr in BMY 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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