BMY vs PFE: Dividend Yield, Growth & Safety Comparison
Bristol Myers Squibb Co (BMY) and Pfizer Inc (PFE) are both in the Health Care sector, making them natural rivals for dividend investors. PFE offers a significantly higher 6.23% yield compared to BMY's 4.09%, a gap of 2.14%. For dividend growth, BMY leads with a 5-year CAGR of 14.0% versus PFE's 10.1%. PFE holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | BMY | PFE |
|---|
| Dividend Yield | 4.09% | 6.23% |
| Annual Dividend | $2.49 | $1.72 |
| 5-Year CAGR | 14.0% | 10.1% |
| Payout Ratio | 72% | 1% |
| Consecutive Years | 0 | 0 |
| Price | $60.77 | $27.80 |
Yield Comparison
Pfizer Inc (PFE) currently yields 6.23%, which is attractive for the broader market. That's 2.14% more than Bristol Myers Squibb Co (BMY), which yields 4.09%. In dollar terms, PFE pays $1.72/share annually versus BMY's $2.49/share.
Dividend Growth
Over the past five years, BMY has grown its dividend at a 14.0% CAGR compared to PFE's 10.1%. 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%. PFE: Dividend growth is accelerating — the 3-year CAGR of 18.3% exceeds the 5-year rate of 10.1% and the 10-year rate of 8.1%.
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. PFE's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. PFE's payout ratio of 1% is more conservative than BMY's 72%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PFE generates approximately $623/year in dividend income, compared to $409/year from BMY — a difference of $214/year. At $100,000, that gap widens to $2140/year.
Verdict
- Best for income: PFE
- Best for growth: BMY
- Best for safety: PFE
Frequently Asked Questions
Which has a higher dividend yield, BMY or PFE?
Pfizer Inc (PFE) has a higher dividend yield of 6.23% compared to Bristol Myers Squibb Co (BMY) at 4.09%.
Is BMY or PFE a better dividend growth stock?
Bristol Myers Squibb Co has the stronger dividend growth with a 5-year CAGR of 14.0%, compared to Pfizer Inc's 10.1%.
Which is safer for dividend income, BMY or PFE?
Bristol Myers Squibb Co's dividend safety is rated "Moderate" while Pfizer Inc 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in BMY vs PFE generate?
A $10,000 investment in BMY generates approximately $409/year in dividends, while the same amount in PFE generates about $623/year.
Which has a lower payout ratio, BMY or PFE?
Pfizer Inc has a lower payout ratio of 1% compared to Bristol Myers Squibb Co's 72%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BMY vs PFE: which is better for retirement income?
It depends on your priorities. PFE for current income, BMY for dividend growth, PFE for safety. Many retirement investors hold both for diversification.
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