LLY vs WST: Dividend Yield, Growth & Safety Comparison
ELI LILLY & Co (LLY) and West Pharmaceutical Services Inc (WST) are both in the Health Care sector, making them natural rivals for dividend investors. Both stocks offer similar yields — LLY at 0.59% and WST at 0.34%. For dividend growth, LLY leads with a 5-year CAGR of 23.8% versus WST's 13.1%. Both stocks carry a "Safe" dividend safety rating. LLY is a Dividend Contender with 11 years of consecutive increases.
Key Metrics Comparison
| Metric | LLY | WST |
|---|
| Dividend Yield | 0.59% | 0.34% |
| Annual Dividend | $6.00 | $0.84 |
| 5-Year CAGR | 23.8% | 13.1% |
| Payout Ratio | 26% | 12% |
| Consecutive Years | 11 | 0 |
| Price | $1045.09 | $248.03 |
Yield Comparison
ELI LILLY & Co (LLY) currently yields 0.59%, which is very low for the broader market. That's 0.24% more than West Pharmaceutical Services Inc (WST), which yields 0.34%. In dollar terms, LLY pays $6.00/share annually versus WST's $0.84/share.
Dividend Growth
Over the past five years, LLY has grown its dividend at a 23.8% CAGR compared to WST's 13.1%. 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%. 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
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. 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 LLY's 26%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LLY generates approximately $59/year in dividend income, compared to $34/year from WST — a difference of $25/year. At $100,000, that gap widens to $250/year.
Verdict
- Best for income: LLY
- Best for growth: LLY
- Best for safety: WST
Frequently Asked Questions
Which has a higher dividend yield, LLY or WST?
ELI LILLY & Co (LLY) has a higher dividend yield of 0.59% compared to West Pharmaceutical Services Inc (WST) at 0.34%.
Is LLY or WST a better dividend growth stock?
ELI LILLY & Co has the stronger dividend growth with a 5-year CAGR of 23.8%, compared to West Pharmaceutical Services Inc's 13.1%.
Which is safer for dividend income, LLY or WST?
ELI LILLY & Co's dividend safety is rated "Safe" while West Pharmaceutical Services 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 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x.
How much income does $10,000 in LLY vs WST generate?
A $10,000 investment in LLY generates approximately $59/year in dividends, while the same amount in WST generates about $34/year.
Is LLY or WST a Dividend Aristocrat?
ELI LILLY & Co is a Dividend Contender with 11 consecutive years of increases. West Pharmaceutical Services Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, LLY or WST?
West Pharmaceutical Services Inc has a lower payout ratio of 12% compared to ELI LILLY & Co's 26%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LLY vs WST: which is better for retirement income?
It depends on your priorities. LLY for current income, LLY for dividend growth, WST for safety. Many retirement investors hold both for diversification.
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