LLY vs WST: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
LLY yields 0.24% more than WST. In dollar terms, LLY pays $6.00/share vs WST's $0.84/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%.
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: The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
WST: The payout ratio of 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in LLY vs WST 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 $248.03 per share, $10,000 buys about 40.3 shares of West Pharmaceutical Services Inc (WST). Each share pays $0.84 per year in dividends, so the position starts out generating roughly $34 per year — about $3 a month.
LLY is the larger income stream from day one: $24 per year more on the same $10,000 invested.
What could $10,000 of LLY or WST 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.
West Pharmaceutical Services Inc (WST) has raised its dividend about 13.1% a year over the past five years. If that pace held, the $34 per year that $10,000 generates today at the current 0.34% yield would reach $118 per year by 2036 — a 1.2% yield on the original cost.
On those trailing rates, LLY pays more in 2036: $497 versus $118 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would WST's dividend growth overtake LLY's higher yield?
It doesn't, on the trailing numbers. ELI LILLY & Co (LLY) yields more today (0.59% vs 0.34%) and has also grown its dividend at least as fast (23.8% vs 13.1% a year over five years). Unless WST accelerates its raises or LLY stumbles, WST never closes the income gap — LLY wins on both current income and growth.
Can LLY and WST 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).
West Pharmaceutical Services Inc (WST) earns $6.75 per share against $0.84 paid out in dividends — 8.0x coverage (a 12% payout ratio).
WST'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 LLY if earnings weaken.
Which fits an early-retirement income portfolio better, LLY or WST?
For income you need right now, ELI LILLY & Co (LLY) leads: $100,000 invested today pays about $49 a month at the current 0.59% yield, versus $29 a month from West Pharmaceutical Services Inc (WST) at 0.34%.
LLY also leads on dividend growth (23.8% vs 13.1% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: LLY has raised its dividend 11 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 $122/yr in WST 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.
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