BMY vs UNH: Dividend Comparison
Dividend data as of
Bristol Myers Squibb Co (BMY) and Unitedhealth Group Inc (UNH) are both in the Health Care sector, making them natural rivals for dividend investors. BMY edges ahead on yield at 4.09% versus UNH's 3.20%. For dividend growth, BMY leads with a 5-year CAGR of 14.0% versus UNH's 11.7%. UNH holds the edge in dividend safety with a "Safe" rating. UNH is a Dividend Contender with 16 years of consecutive increases.
Verdict
Yield Analysis
BMY yields 0.90% more than UNH. In dollar terms, BMY pays $2.49/share vs UNH's $8.73/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%.
UNH: Dividend growth is slowing — the 3-year CAGR of 9.4% trails the 5-year rate of 11.7% and the 10-year rate of 15.6%.
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.
UNH: The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in BMY vs UNH 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 $291.12 per share, $10,000 buys about 34.4 shares of Unitedhealth Group Inc (UNH). Each share pays $8.73 per year in dividends, so the position starts out generating roughly $300 per year — about $25 a month.
BMY is the larger income stream from day one: $110 per year more on the same $10,000 invested.
What could $10,000 of BMY or UNH 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.
Unitedhealth Group Inc (UNH) has raised its dividend about 11.7% a year over the past five years. If that pace held, the $320 per year that $10,000 generates today at the current 3.20% yield would reach $970 per year by 2036 — a 9.7% yield on the original cost.
On those trailing rates, BMY pays more in 2036: $1,513 versus $970 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would UNH's dividend growth overtake BMY's higher yield?
It doesn't, on the trailing numbers. Bristol Myers Squibb Co (BMY) yields more today (4.09% vs 3.20%) and has also grown its dividend at least as fast (14.0% vs 11.7% a year over five years). Unless UNH accelerates its raises or BMY stumbles, UNH never closes the income gap — BMY wins on both current income and growth.
Can BMY and UNH 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).
Unitedhealth Group Inc (UNH) earns $19.19 per share against $8.73 paid out in dividends — 2.2x coverage (a 45% payout ratio).
UNH'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 UNH?
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 $266 a month from Unitedhealth Group Inc (UNH) at 3.20%.
BMY also leads on dividend growth (14.0% vs 11.7% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: UNH has raised its dividend 16 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 $1,328/yr in UNH 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.
Track BMY and UNH in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.