PFE vs UNH: Dividend Yield, Growth & Safety Comparison
Pfizer Inc (PFE) and Unitedhealth Group Inc (UNH) are both in the Health Care sector, making them natural rivals for dividend investors. PFE offers a significantly higher 6.23% yield compared to UNH's 3.20%, a gap of 3.03%. For dividend growth, UNH leads with a 5-year CAGR of 11.7% versus PFE's 10.1%. Both stocks carry a "Safe" dividend safety rating. UNH is a Dividend Contender with 16 years of consecutive increases.
Key Metrics Comparison
| Metric | PFE | UNH |
|---|
| Dividend Yield | 6.23% | 3.20% |
| Annual Dividend | $1.72 | $8.73 |
| 5-Year CAGR | 10.1% | 11.7% |
| Payout Ratio | 1% | 45% |
| Consecutive Years | 0 | 16 |
| Price | $27.80 | $291.12 |
Yield Comparison
Pfizer Inc (PFE) currently yields 6.23%, which is attractive for the broader market. That's 3.03% more than Unitedhealth Group Inc (UNH), which yields 3.20%. In dollar terms, PFE pays $1.72/share annually versus UNH's $8.73/share.
Dividend Growth
Over the past five years, UNH has grown its dividend at a 11.7% CAGR compared to PFE's 10.1%. 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%. 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
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. UNH's dividend safety is rated "Safe." The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x. PFE's payout ratio of 1% is more conservative than UNH's 45%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PFE generates approximately $623/year in dividend income, compared to $320/year from UNH — a difference of $303/year. At $100,000, that gap widens to $3030/year.
Verdict
- Best for income: PFE
- Best for growth: UNH
- Best for safety: PFE
Frequently Asked Questions
Which has a higher dividend yield, PFE or UNH?
Pfizer Inc (PFE) has a higher dividend yield of 6.23% compared to Unitedhealth Group Inc (UNH) at 3.20%.
Is PFE or UNH a better dividend growth stock?
Unitedhealth Group Inc has the stronger dividend growth with a 5-year CAGR of 11.7%, compared to Pfizer Inc's 10.1%.
Which is safer for dividend income, PFE or UNH?
Pfizer Inc's dividend safety is rated "Safe" while Unitedhealth Group Inc is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x.
How much income does $10,000 in PFE vs UNH generate?
A $10,000 investment in PFE generates approximately $623/year in dividends, while the same amount in UNH generates about $320/year.
Is PFE or UNH a Dividend Aristocrat?
Unitedhealth Group Inc is a Dividend Contender with 16 consecutive years of increases. Pfizer Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, PFE or UNH?
Pfizer Inc has a lower payout ratio of 1% compared to Unitedhealth Group Inc's 45%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PFE vs UNH: which is better for retirement income?
It depends on your priorities. PFE for current income, UNH for dividend growth, PFE for safety. Many retirement investors hold both for diversification.
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