BMY vs WST: Dividend Yield, Growth & Safety Comparison
Bristol Myers Squibb Co (BMY) and West Pharmaceutical Services Inc (WST) are both in the Health Care sector, making them natural rivals for dividend investors. BMY offers a significantly higher 4.09% yield compared to WST's 0.34%, a gap of 3.75%. Both stocks show similar dividend growth rates, each around 14.0% over the past five years. WST holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | BMY | WST |
|---|
| Dividend Yield | 4.09% | 0.34% |
| Annual Dividend | $2.49 | $0.84 |
| 5-Year CAGR | 14.0% | 13.1% |
| Payout Ratio | 72% | 12% |
| Consecutive Years | 0 | 0 |
| Price | $60.77 | $248.03 |
Yield Comparison
Bristol Myers Squibb Co (BMY) currently yields 4.09%, which is attractive for the broader market. That's 3.75% more than West Pharmaceutical Services Inc (WST), which yields 0.34%. In dollar terms, BMY pays $2.49/share annually versus WST's $0.84/share.
Dividend Growth
Over the past five years, BMY has grown its dividend at a 14.0% CAGR compared to WST's 13.1%. 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%. WST: Dividend growth is accelerating — the 3-year CAGR of 21.1% exceeds the 5-year rate of 13.1% and the 10-year rate of 9.7%.
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. WST's dividend safety is rated "Safe." The payout ratio of 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x. WST's payout ratio of 12% 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 $34/year from WST — a difference of $375/year. At $100,000, that gap widens to $3750/year.
Verdict
- Best for income: BMY
- Best for growth: BMY
- Best for safety: WST
Frequently Asked Questions
Which has a higher dividend yield, BMY or WST?
Bristol Myers Squibb Co (BMY) has a higher dividend yield of 4.09% compared to West Pharmaceutical Services Inc (WST) at 0.34%.
Is BMY or WST a better dividend growth stock?
Bristol Myers Squibb Co has the stronger dividend growth with a 5-year CAGR of 14.0%, compared to West Pharmaceutical Services Inc's 13.1%.
Which is safer for dividend income, BMY or WST?
Bristol Myers Squibb Co's dividend safety is rated "Moderate" while West Pharmaceutical Services 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 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x.
How much income does $10,000 in BMY vs WST generate?
A $10,000 investment in BMY generates approximately $409/year in dividends, while the same amount in WST generates about $34/year.
Which has a lower payout ratio, BMY or WST?
West Pharmaceutical Services Inc has a lower payout ratio of 12% compared to Bristol Myers Squibb Co's 72%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BMY vs WST: which is better for retirement income?
It depends on your priorities. BMY for current income, BMY for dividend growth, WST for safety. Many retirement investors hold both for diversification.
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