LLY vs UNH: Dividend Comparison
Dividend data as of
ELI LILLY & Co (LLY) and Unitedhealth Group Inc (UNH) are both in the Health Care sector, making them natural rivals for dividend investors. UNH offers a significantly higher 3.20% yield compared to LLY's 0.59%, a gap of 2.61%. For dividend growth, LLY leads with a 5-year CAGR of 23.8% versus UNH's 11.7%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Contenders.
Verdict
Yield Analysis
UNH yields 2.61% more than LLY. In dollar terms, LLY pays $6.00/share vs UNH's $8.73/share annually.
Dividend Growth
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%.
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
LLY: The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
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 LLY vs UNH today?
At $1045.09 per share, $10,000 buys about 9.6 shares of ELI LILLY & Co (LLY). Each share pays $6.00 per year in dividends, so the position starts out generating roughly $57 per year — about $5 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.
UNH is the larger income stream from day one: $242 per year more on the same $10,000 invested.
What could $10,000 of LLY or UNH income look like in 10 years?
ELI LILLY & Co (LLY) has raised its dividend about 23.8% a year over the past five years. If that pace held, the $59 per year that $10,000 generates today at the current 0.59% yield would reach $497 per year by 2036 — a 5.0% 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, UNH pays more in 2036: $970 versus $497 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would LLY's dividend growth overtake UNH's higher yield?
ELI LILLY & Co (LLY) yields less today (0.59% vs 3.20%) but has grown its dividend faster — 23.8% vs 11.7% a year over the past five years. If both trends continued, a $10,000 position in LLY would start out-earning the same position in UNH around 2043 (roughly 17 years from now), paying about $2,222 per year at the crossover. Before that point, UNH pays more each year; after it, the gap compounds in LLY's favor.
Can LLY and UNH afford their dividends?
ELI LILLY & Co (LLY) earns $22.98 per share against $6.00 paid out in dividends — 3.8x coverage (a 26% 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).
LLY'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 UNH if earnings weaken.
Which fits an early-retirement income portfolio better, LLY or UNH?
For income you need right now, Unitedhealth Group Inc (UNH) leads: $100,000 invested today pays about $266 a month at the current 3.20% yield, versus $49 a month from ELI LILLY & Co (LLY) at 0.59%.
With a decade or more before the income is needed, LLY's faster dividend growth (23.8% vs 11.7% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: LLY has raised its dividend 11 consecutive years; 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 $527/yr in LLY 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 LLY 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.