AMGN vs UNH: Dividend Comparison
Dividend data as of
Amgen Inc (AMGN) and Unitedhealth Group Inc (UNH) are both in the Health Care sector, making them natural rivals for dividend investors. UNH edges ahead on yield at 3.20% versus AMGN's 2.61%. For dividend growth, AMGN leads with a 5-year CAGR of 15.9% versus UNH's 11.7%. UNH holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Contenders.
Verdict
Yield Analysis
UNH yields 0.58% more than AMGN. In dollar terms, AMGN pays $9.52/share vs UNH's $8.73/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%.
UNH: Dividend growth is slowing — the 3-year CAGR of 9.4% trails the 5-year rate of 11.7% and the 10-year rate of 15.6%.
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.
UNH: The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AMGN vs UNH 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 $291.12 per share, $10,000 buys about 34.4 shares of Unitedhealth Group Inc (UNH). Each share pays $8.73 per year in dividends, so the position starts out generating roughly $300 per year — about $25 a month.
UNH is the larger income stream from day one: $42 per year more on the same $10,000 invested.
What could $10,000 of AMGN or UNH 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.
Unitedhealth Group Inc (UNH) has raised its dividend about 11.7% a year over the past five years. If that pace held, the $320 per year that $10,000 generates today at the current 3.20% yield would reach $970 per year by 2036 — a 9.7% yield on the original cost.
On those trailing rates, AMGN pays more in 2036: $1,140 versus $970 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 UNH's higher yield?
Amgen Inc (AMGN) yields less today (2.61% vs 3.20%) but has grown its dividend faster — 15.9% vs 11.7% 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 UNH around 2032 (roughly 6 years from now), paying about $632 per year at the crossover. Before that point, UNH pays more each year; after it, the gap compounds in AMGN's favor.
Can AMGN and UNH 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).
Unitedhealth Group Inc (UNH) earns $19.19 per share against $8.73 paid out in dividends — 2.2x coverage (a 45% payout ratio).
UNH's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for AMGN if earnings weaken.
Which fits an early-retirement income portfolio better, AMGN or UNH?
For income you need right now, Unitedhealth Group Inc (UNH) leads: $100,000 invested today pays about $266 a month at the current 3.20% 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 11.7% 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; UNH has raised its dividend 16 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 $1,328/yr in UNH 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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