LLY vs PFE: Dividend Yield, Growth & Safety Comparison
ELI LILLY & Co (LLY) 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 LLY's 0.59%, a gap of 5.64%. For dividend growth, LLY leads with a 5-year CAGR of 23.8% versus PFE's 10.1%. Both stocks carry a "Safe" dividend safety rating. LLY is a Dividend Contender with 11 years of consecutive increases.
Key Metrics Comparison
| Metric | LLY | PFE |
|---|
| Dividend Yield | 0.59% | 6.23% |
| Annual Dividend | $6.00 | $1.72 |
| 5-Year CAGR | 23.8% | 10.1% |
| Payout Ratio | 26% | 1% |
| Consecutive Years | 11 | 0 |
| Price | $1045.09 | $27.80 |
Yield Comparison
Pfizer Inc (PFE) currently yields 6.23%, which is attractive for the broader market. That's 5.64% more than ELI LILLY & Co (LLY), which yields 0.59%. In dollar terms, PFE pays $1.72/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 PFE's 10.1%. 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%. 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
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. 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 LLY's 26%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PFE generates approximately $623/year in dividend income, compared to $59/year from LLY — a difference of $564/year. At $100,000, that gap widens to $5640/year.
Verdict
- Best for income: PFE
- Best for growth: LLY
- Best for safety: PFE
Frequently Asked Questions
Which has a higher dividend yield, LLY or PFE?
Pfizer Inc (PFE) has a higher dividend yield of 6.23% compared to ELI LILLY & Co (LLY) at 0.59%.
Is LLY or PFE a better dividend growth stock?
ELI LILLY & Co has the stronger dividend growth with a 5-year CAGR of 23.8%, compared to Pfizer Inc's 10.1%.
Which is safer for dividend income, LLY or PFE?
ELI LILLY & Co's dividend safety is rated "Safe" while Pfizer Inc is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. 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 LLY vs PFE generate?
A $10,000 investment in LLY generates approximately $59/year in dividends, while the same amount in PFE generates about $623/year.
Is LLY or PFE a Dividend Aristocrat?
ELI LILLY & Co is a Dividend Contender with 11 consecutive years of increases. Pfizer Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, LLY or PFE?
Pfizer Inc has a lower payout ratio of 1% compared to ELI LILLY & Co's 26%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LLY vs PFE: which is better for retirement income?
It depends on your priorities. PFE for current income, LLY for dividend growth, PFE for safety. Many retirement investors hold both for diversification.
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