AMGN vs BMY: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | AMGN | BMY |
|---|
| Dividend Yield | 2.61% | 4.09% |
| Annual Dividend | $9.52 | $2.49 |
| 5-Year CAGR | 15.9% | 14.0% |
| Payout Ratio | 67% | 72% |
| Consecutive Years | 14 | 0 |
| Price | $369.70 | $60.77 |
Yield Comparison
Bristol Myers Squibb Co (BMY) currently yields 4.09%, which is attractive for the broader market. That's 1.48% more than Amgen Inc (AMGN), which yields 2.61%. In dollar terms, BMY pays $2.49/share annually versus AMGN's $9.52/share.
Dividend Growth
Over the past five years, AMGN has grown its dividend at a 15.9% CAGR compared to BMY's 14.0%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "Moderate." 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. AMGN's payout ratio of 67% is more conservative than BMY's 72%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in BMY generates approximately $409/year in dividend income, compared to $261/year from AMGN — a difference of $148/year. At $100,000, that gap widens to $1480/year.
Verdict
- Best for income: BMY
- Best for growth: AMGN
- Best for safety: AMGN
Frequently Asked Questions
Which has a higher dividend yield, AMGN or BMY?
Bristol Myers Squibb Co (BMY) has a higher dividend yield of 4.09% compared to Amgen Inc (AMGN) at 2.61%.
Is AMGN or BMY a better dividend growth stock?
Amgen Inc has the stronger dividend growth with a 5-year CAGR of 15.9%, compared to Bristol Myers Squibb Co's 14.0%.
Which is safer for dividend income, AMGN or BMY?
Amgen Inc's dividend safety is rated "Moderate" while Bristol Myers Squibb Co is rated "Moderate." 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. 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.
How much income does $10,000 in AMGN vs BMY generate?
A $10,000 investment in AMGN generates approximately $261/year in dividends, while the same amount in BMY generates about $409/year.
Is AMGN or BMY a Dividend Aristocrat?
Amgen Inc is a Dividend Contender with 14 consecutive years of increases. Bristol Myers Squibb Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, AMGN or BMY?
Amgen Inc has a lower payout ratio of 67% compared to Bristol Myers Squibb Co's 72%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMGN vs BMY: which is better for retirement income?
It depends on your priorities. BMY for current income, AMGN for dividend growth, AMGN for safety. Many retirement investors hold both for diversification.
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