BMY vs JNJ: Dividend Yield, Growth & Safety Comparison
Bristol Myers Squibb Co (BMY) and Johnson & Johnson (JNJ) are both in the Health Care sector, making them natural rivals for dividend investors. BMY offers a significantly higher 4.09% yield compared to JNJ's 2.16%, a gap of 1.93%. For dividend growth, BMY leads with a 5-year CAGR of 14.0% versus JNJ's 5.2%. JNJ holds the edge in dividend safety with a "Safe" rating. JNJ is a Dividend King with 63 years of consecutive increases.
Key Metrics Comparison
| Metric | BMY | JNJ |
|---|
| Dividend Yield | 4.09% | 2.16% |
| Annual Dividend | $2.49 | $5.14 |
| 5-Year CAGR | 14.0% | 5.2% |
| Payout Ratio | 72% | 47% |
| Consecutive Years | 0 | 63 |
| Price | $60.77 | $243.53 |
Yield Comparison
Bristol Myers Squibb Co (BMY) currently yields 4.09%, which is attractive for the broader market. That's 1.93% more than Johnson & Johnson (JNJ), which yields 2.16%. In dollar terms, BMY pays $2.49/share annually versus JNJ's $5.14/share.
Dividend Growth
Over the past five years, BMY has grown its dividend at a 14.0% CAGR compared to JNJ's 5.2%. BMY: Dividend growth is accelerating — the 3-year CAGR of 20.4% exceeds the 5-year rate of 14.0% and the 10-year rate of 9.0%. JNJ: Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.2% and the 10-year rate of 5.6%.
Dividend Safety
BMY's dividend safety is rated "Moderate." The payout ratio of 72% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. JNJ's dividend safety is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. JNJ's payout ratio of 47% is more conservative than BMY's 72%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in BMY generates approximately $409/year in dividend income, compared to $216/year from JNJ — a difference of $193/year. At $100,000, that gap widens to $1930/year.
Verdict
- Best for income: BMY
- Best for growth: BMY
- Best for safety: JNJ
Frequently Asked Questions
Which has a higher dividend yield, BMY or JNJ?
Bristol Myers Squibb Co (BMY) has a higher dividend yield of 4.09% compared to Johnson & Johnson (JNJ) at 2.16%.
Is BMY or JNJ a better dividend growth stock?
Bristol Myers Squibb Co has the stronger dividend growth with a 5-year CAGR of 14.0%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, BMY or JNJ?
Bristol Myers Squibb Co's dividend safety is rated "Moderate" while Johnson & Johnson is rated "Safe." The payout ratio of 72% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
How much income does $10,000 in BMY vs JNJ generate?
A $10,000 investment in BMY generates approximately $409/year in dividends, while the same amount in JNJ generates about $216/year.
Is BMY or JNJ a Dividend Aristocrat?
Johnson & Johnson is a Dividend King with 63 consecutive years of increases. Bristol Myers Squibb Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, BMY or JNJ?
Johnson & Johnson has a lower payout ratio of 47% compared to Bristol Myers Squibb Co's 72%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BMY vs JNJ: which is better for retirement income?
It depends on your priorities. BMY for current income, BMY for dividend growth, JNJ for safety. Many retirement investors hold both for diversification.
BMY Dividend Analysis | JNJ Dividend Analysis | All Comparisons | Comparison Tool