AMGN vs WST: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
AMGN yields 2.27% more than WST. In dollar terms, AMGN pays $9.52/share vs WST's $0.84/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%.
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: 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: The payout ratio of 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AMGN vs WST 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 $248.03 per share, $10,000 buys about 40.3 shares of West Pharmaceutical Services Inc (WST). Each share pays $0.84 per year in dividends, so the position starts out generating roughly $34 per year — about $3 a month.
AMGN is the larger income stream from day one: $224 per year more on the same $10,000 invested.
What could $10,000 of AMGN or WST 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.
West Pharmaceutical Services Inc (WST) has raised its dividend about 13.1% a year over the past five years. If that pace held, the $34 per year that $10,000 generates today at the current 0.34% yield would reach $118 per year by 2036 — a 1.2% yield on the original cost.
On those trailing rates, AMGN pays more in 2036: $1,140 versus $118 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would WST's dividend growth overtake AMGN's higher yield?
It doesn't, on the trailing numbers. Amgen Inc (AMGN) yields more today (2.61% vs 0.34%) and has also grown its dividend at least as fast (15.9% vs 13.1% a year over five years). Unless WST accelerates its raises or AMGN stumbles, WST never closes the income gap — AMGN wins on both current income and growth.
Can AMGN and WST 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).
West Pharmaceutical Services Inc (WST) earns $6.75 per share against $0.84 paid out in dividends — 8.0x coverage (a 12% payout ratio).
WST'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 WST?
For income you need right now, Amgen Inc (AMGN) leads: $100,000 invested today pays about $218 a month at the current 2.61% yield, versus $29 a month from West Pharmaceutical Services Inc (WST) at 0.34%.
AMGN also leads on dividend growth (15.9% vs 13.1% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: AMGN has raised its dividend 14 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 $122/yr in WST 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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