BMY vs LLY: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | BMY | LLY |
|---|
| Dividend Yield | 4.09% | 0.59% |
| Annual Dividend | $2.49 | $6.00 |
| 5-Year CAGR | 14.0% | 23.8% |
| Payout Ratio | 72% | 26% |
| Consecutive Years | 0 | 11 |
| Price | $60.77 | $1045.09 |
Yield Comparison
Bristol Myers Squibb Co (BMY) currently yields 4.09%, which is attractive for the broader market. That's 3.51% more than ELI LILLY & Co (LLY), which yields 0.59%. In dollar terms, BMY pays $2.49/share annually versus LLY's $6.00/share.
Dividend Growth
Over the past five years, LLY has grown its dividend at a 23.8% CAGR compared to BMY's 14.0%. 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'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. LLY's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. LLY's payout ratio of 26% 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 $59/year from LLY — a difference of $350/year. At $100,000, that gap widens to $3500/year.
Verdict
- Best for income: BMY
- Best for growth: LLY
- Best for safety: LLY
Frequently Asked Questions
Which has a higher dividend yield, BMY or LLY?
Bristol Myers Squibb Co (BMY) has a higher dividend yield of 4.09% compared to ELI LILLY & Co (LLY) at 0.59%.
Is BMY or LLY a better dividend growth stock?
ELI LILLY & Co has the stronger dividend growth with a 5-year CAGR of 23.8%, compared to Bristol Myers Squibb Co's 14.0%.
Which is safer for dividend income, BMY or LLY?
Bristol Myers Squibb Co's dividend safety is rated "Moderate" while ELI LILLY & Co 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 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
How much income does $10,000 in BMY vs LLY generate?
A $10,000 investment in BMY generates approximately $409/year in dividends, while the same amount in LLY generates about $59/year.
Is BMY or LLY a Dividend Aristocrat?
ELI LILLY & Co is a Dividend Contender with 11 consecutive years of increases. Bristol Myers Squibb Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, BMY or LLY?
ELI LILLY & Co has a lower payout ratio of 26% compared to Bristol Myers Squibb Co's 72%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BMY vs LLY: which is better for retirement income?
It depends on your priorities. BMY for current income, LLY for dividend growth, LLY for safety. Many retirement investors hold both for diversification.
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