AMGN vs WST: Dividend Yield, Growth & Safety Comparison
Amgen Inc (AMGN) and West Pharmaceutical Services Inc (WST) are both in the Health Care sector, making them natural rivals for dividend investors. AMGN offers a significantly higher 2.61% yield compared to WST's 0.34%, a gap of 2.27%. For dividend growth, AMGN leads with a 5-year CAGR of 15.9% versus WST's 13.1%. WST 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 | WST |
|---|
| Dividend Yield | 2.61% | 0.34% |
| Annual Dividend | $9.52 | $0.84 |
| 5-Year CAGR | 15.9% | 13.1% |
| Payout Ratio | 67% | 12% |
| Consecutive Years | 14 | 0 |
| Price | $369.70 | $248.03 |
Yield Comparison
Amgen Inc (AMGN) currently yields 2.61%, which is solid for the broader market. That's 2.27% more than West Pharmaceutical Services Inc (WST), which yields 0.34%. In dollar terms, AMGN pays $9.52/share annually versus WST's $0.84/share.
Dividend Growth
Over the past five years, AMGN has grown its dividend at a 15.9% CAGR compared to WST's 13.1%. 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%. WST: Dividend growth is accelerating — the 3-year CAGR of 21.1% exceeds the 5-year rate of 13.1% and the 10-year rate of 9.7%.
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. WST's dividend safety is rated "Safe." The payout ratio of 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x. WST's payout ratio of 12% 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 $34/year from WST — a difference of $227/year. At $100,000, that gap widens to $2270/year.
Verdict
- Best for income: AMGN
- Best for growth: AMGN
- Best for safety: WST
Frequently Asked Questions
Which has a higher dividend yield, AMGN or WST?
Amgen Inc (AMGN) has a higher dividend yield of 2.61% compared to West Pharmaceutical Services Inc (WST) at 0.34%.
Is AMGN or WST a better dividend growth stock?
Amgen Inc has the stronger dividend growth with a 5-year CAGR of 15.9%, compared to West Pharmaceutical Services Inc's 13.1%.
Which is safer for dividend income, AMGN or WST?
Amgen Inc's dividend safety is rated "Moderate" while West Pharmaceutical Services 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 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x.
How much income does $10,000 in AMGN vs WST generate?
A $10,000 investment in AMGN generates approximately $261/year in dividends, while the same amount in WST generates about $34/year.
Is AMGN or WST a Dividend Aristocrat?
Amgen Inc is a Dividend Contender with 14 consecutive years of increases. West Pharmaceutical Services Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, AMGN or WST?
West Pharmaceutical Services Inc has a lower payout ratio of 12% compared to Amgen Inc's 67%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMGN vs WST: which is better for retirement income?
It depends on your priorities. AMGN for current income, AMGN for dividend growth, WST for safety. Many retirement investors hold both for diversification.
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