AMGN vs LLY: Dividend Yield, Growth & Safety Comparison
Amgen Inc (AMGN) and ELI LILLY & Co (LLY) are both in the Health Care sector, making them natural rivals for dividend investors. AMGN offers a significantly higher 2.61% yield compared to LLY's 0.59%, a gap of 2.03%. For dividend growth, LLY leads with a 5-year CAGR of 23.8% versus AMGN's 15.9%. LLY holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Contenders.
Key Metrics Comparison
| Metric | AMGN | LLY |
|---|
| Dividend Yield | 2.61% | 0.59% |
| Annual Dividend | $9.52 | $6.00 |
| 5-Year CAGR | 15.9% | 23.8% |
| Payout Ratio | 67% | 26% |
| Consecutive Years | 14 | 11 |
| Price | $369.70 | $1045.09 |
Yield Comparison
Amgen Inc (AMGN) currently yields 2.61%, which is solid for the broader market. That's 2.03% more than ELI LILLY & Co (LLY), which yields 0.59%. In dollar terms, AMGN pays $9.52/share annually versus LLY's $6.00/share.
Dividend Growth
Over the past five years, LLY has grown its dividend at a 23.8% CAGR compared to AMGN's 15.9%. 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%. LLY: Dividend growth is slowing — the 3-year CAGR of 15.2% trails the 5-year rate of 23.8% and the 10-year rate of 16.4%.
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. LLY's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. LLY's payout ratio of 26% is more conservative than AMGN's 67%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in AMGN generates approximately $261/year in dividend income, compared to $59/year from LLY — a difference of $202/year. At $100,000, that gap widens to $2020/year.
Verdict
- Best for income: AMGN
- Best for growth: LLY
- Best for safety: LLY
Frequently Asked Questions
Which has a higher dividend yield, AMGN or LLY?
Amgen Inc (AMGN) has a higher dividend yield of 2.61% compared to ELI LILLY & Co (LLY) at 0.59%.
Is AMGN or LLY a better dividend growth stock?
ELI LILLY & Co has the stronger dividend growth with a 5-year CAGR of 23.8%, compared to Amgen Inc's 15.9%.
Which is safer for dividend income, AMGN or LLY?
Amgen Inc's dividend safety is rated "Moderate" while ELI LILLY & Co is rated "Safe." 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 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
How much income does $10,000 in AMGN vs LLY generate?
A $10,000 investment in AMGN generates approximately $261/year in dividends, while the same amount in LLY generates about $59/year.
Is AMGN or LLY a Dividend Aristocrat?
Amgen Inc is a Dividend Contender (14 years) and ELI LILLY & Co is a Dividend Contender (11 years).
Which has a lower payout ratio, AMGN or LLY?
ELI LILLY & Co has a lower payout ratio of 26% compared to Amgen Inc's 67%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMGN vs LLY: which is better for retirement income?
It depends on your priorities. AMGN for current income, LLY for dividend growth, LLY for safety. Many retirement investors hold both for diversification.
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