BMY vs LLY: Dividend Comparison
Dividend data as of
Bristol Myers Squibb Co (BMY) and ELI LILLY & Co (LLY) are both in the Health Care sector, making them natural rivals for dividend investors. BMY offers a significantly higher 4.09% yield compared to LLY's 0.59%, a gap of 3.51%. For dividend growth, LLY leads with a 5-year CAGR of 23.8% versus BMY's 14.0%. LLY holds the edge in dividend safety with a "Safe" rating. LLY is a Dividend Contender with 11 years of consecutive increases.
Verdict
Yield Analysis
BMY yields 3.51% more than LLY. In dollar terms, BMY pays $2.49/share vs LLY's $6.00/share annually.
Dividend Growth
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%.
LLY: Dividend growth is slowing — the 3-year CAGR of 15.2% trails the 5-year rate of 23.8% and the 10-year rate of 16.4%.
Dividend Safety
BMY: 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.
LLY: The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in BMY vs LLY today?
At $60.77 per share, $10,000 buys about 164.5 shares of Bristol Myers Squibb Co (BMY). Each share pays $2.49 per year in dividends, so the position starts out generating roughly $410 per year — about $34 a month.
At $1045.09 per share, $10,000 buys about 9.6 shares of ELI LILLY & Co (LLY). Each share pays $6.00 per year in dividends, so the position starts out generating roughly $57 per year — about $5 a month.
BMY is the larger income stream from day one: $352 per year more on the same $10,000 invested.
What could $10,000 of BMY or LLY income look like in 10 years?
Bristol Myers Squibb Co (BMY) has raised its dividend about 14.0% a year over the past five years. If that pace held, the $409 per year that $10,000 generates today at the current 4.09% yield would reach $1,513 per year by 2036 — a 15.1% yield on the original cost.
ELI LILLY & Co (LLY) has raised its dividend about 23.8% a year over the past five years. If that pace held, the $59 per year that $10,000 generates today at the current 0.59% yield would reach $497 per year by 2036 — a 5.0% yield on the original cost.
On those trailing rates, BMY pays more in 2036: $1,513 versus $497 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would LLY's dividend growth overtake BMY's higher yield?
ELI LILLY & Co (LLY) yields less today (0.59% vs 4.09%) but has grown its dividend faster — 23.8% vs 14.0% a year over the past five years. If both trends continued, a $10,000 position in LLY would start out-earning the same position in BMY around 2050 (roughly 24 years from now), paying about $9,930 per year at the crossover. Before that point, BMY pays more each year; after it, the gap compounds in LLY's favor.
Can BMY and LLY afford their dividends?
Bristol Myers Squibb Co (BMY) earns $3.46 per share against $2.49 paid out in dividends — 1.4x coverage (a 72% payout ratio).
ELI LILLY & Co (LLY) earns $22.98 per share against $6.00 paid out in dividends — 3.8x coverage (a 26% payout ratio).
LLY'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 BMY if earnings weaken.
Which fits an early-retirement income portfolio better, BMY or LLY?
For income you need right now, Bristol Myers Squibb Co (BMY) leads: $100,000 invested today pays about $341 a month at the current 4.09% yield, versus $49 a month from ELI LILLY & Co (LLY) at 0.59%.
With a decade or more before the income is needed, LLY's faster dividend growth (23.8% vs 14.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: LLY has raised its dividend 11 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 $2,259/yr in BMY vs $527/yr in LLY 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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