BMY vs PFE: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
PFE yields 2.14% more than BMY. In dollar terms, BMY pays $2.49/share vs PFE's $1.72/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%.
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: 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: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in BMY vs PFE 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 $27.80 per share, $10,000 buys about 359.8 shares of Pfizer Inc (PFE). Each share pays $1.72 per year in dividends, so the position starts out generating roughly $619 per year — about $52 a month.
PFE is the larger income stream from day one: $209 per year more on the same $10,000 invested.
What could $10,000 of BMY or PFE 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.
Pfizer Inc (PFE) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $623 per year that $10,000 generates today at the current 6.23% yield would reach $1,632 per year by 2036 — a 16.3% yield on the original cost.
On those trailing rates, PFE pays more in 2036: $1,632 versus $1,513 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would BMY's dividend growth overtake PFE's higher yield?
Bristol Myers Squibb Co (BMY) yields less today (4.09% vs 6.23%) but has grown its dividend faster — 14.0% vs 10.1% a year over the past five years. If both trends continued, a $10,000 position in BMY would start out-earning the same position in PFE around 2039 (roughly 13 years from now), paying about $2,239 per year at the crossover. Before that point, PFE pays more each year; after it, the gap compounds in BMY's favor.
Can BMY and PFE 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).
Pfizer Inc (PFE) earns $1.36 per share against $1.72 paid out in dividends — 0.8x coverage (a 1% payout ratio).
BMY'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 PFE if earnings weaken.
Which fits an early-retirement income portfolio better, BMY or PFE?
For income you need right now, Pfizer Inc (PFE) leads: $100,000 invested today pays about $519 a month at the current 6.23% yield, versus $341 a month from Bristol Myers Squibb Co (BMY) at 4.09%.
With a decade or more before the income is needed, BMY's faster dividend growth (14.0% vs 10.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
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 $2,987/yr in PFE 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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