AMGN vs PFE: Dividend Yield, Growth & Safety Comparison
Amgen Inc (AMGN) 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 AMGN's 2.61%, a gap of 3.62%. For dividend growth, AMGN leads with a 5-year CAGR of 15.9% versus PFE's 10.1%. PFE holds the edge in dividend safety with a "Safe" rating. AMGN is a Dividend Contender with 14 years of consecutive increases.
Key Metrics Comparison
| Metric | AMGN | PFE |
|---|
| Dividend Yield | 2.61% | 6.23% |
| Annual Dividend | $9.52 | $1.72 |
| 5-Year CAGR | 15.9% | 10.1% |
| Payout Ratio | 67% | 1% |
| Consecutive Years | 14 | 0 |
| Price | $369.70 | $27.80 |
Yield Comparison
Pfizer Inc (PFE) currently yields 6.23%, which is attractive for the broader market. That's 3.62% more than Amgen Inc (AMGN), which yields 2.61%. In dollar terms, PFE pays $1.72/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 PFE's 10.1%. 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%. 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
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. 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. PFE's payout ratio of 1% is more conservative than AMGN's 67%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PFE generates approximately $623/year in dividend income, compared to $261/year from AMGN — a difference of $362/year. At $100,000, that gap widens to $3620/year.
Verdict
- Best for income: PFE
- Best for growth: AMGN
- Best for safety: PFE
Frequently Asked Questions
Which has a higher dividend yield, AMGN or PFE?
Pfizer Inc (PFE) has a higher dividend yield of 6.23% compared to Amgen Inc (AMGN) at 2.61%.
Is AMGN or PFE a better dividend growth stock?
Amgen Inc has the stronger dividend growth with a 5-year CAGR of 15.9%, compared to Pfizer Inc's 10.1%.
Which is safer for dividend income, AMGN or PFE?
Amgen Inc's dividend safety is rated "Moderate" while Pfizer Inc 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in AMGN vs PFE generate?
A $10,000 investment in AMGN generates approximately $261/year in dividends, while the same amount in PFE generates about $623/year.
Is AMGN or PFE a Dividend Aristocrat?
Amgen Inc is a Dividend Contender with 14 consecutive years of increases. Pfizer Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, AMGN or PFE?
Pfizer Inc has a lower payout ratio of 1% compared to Amgen Inc's 67%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMGN vs PFE: which is better for retirement income?
It depends on your priorities. PFE for current income, AMGN for dividend growth, PFE for safety. Many retirement investors hold both for diversification.
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