PFE vs WST: Dividend Comparison
Dividend data as of
Pfizer Inc (PFE) and West Pharmaceutical Services Inc (WST) are both in the Health Care sector, making them natural rivals for dividend investors. PFE offers a significantly higher 6.23% yield compared to WST's 0.34%, a gap of 5.88%. For dividend growth, WST leads with a 5-year CAGR of 13.1% versus PFE's 10.1%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
PFE yields 5.88% more than WST. In dollar terms, PFE pays $1.72/share vs WST's $0.84/share annually.
Dividend Growth
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%.
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
PFE: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
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 PFE vs WST today?
At $27.80 per share, $10,000 buys about 359.8 shares of Pfizer Inc (PFE). Each share pays $1.72 per year in dividends, so the position starts out generating roughly $619 per year — about $52 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.
PFE is the larger income stream from day one: $585 per year more on the same $10,000 invested.
What could $10,000 of PFE or WST income look like in 10 years?
Pfizer Inc (PFE) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $623 per year that $10,000 generates today at the current 6.23% yield would reach $1,632 per year by 2036 — a 16.3% 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, PFE pays more in 2036: $1,632 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 PFE's higher yield?
Not within a realistic holding period. West Pharmaceutical Services Inc (WST) is growing its dividend faster (13.1% vs 10.1% a year), but the starting-yield gap — 6.23% for PFE vs 0.34% for WST — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, PFE's head start is decisive.
Can PFE and WST afford their dividends?
Pfizer Inc (PFE) earns $1.36 per share against $1.72 paid out in dividends — 0.8x coverage (a 1% 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 PFE if earnings weaken.
Which fits an early-retirement income portfolio better, PFE or WST?
For income you need right now, Pfizer Inc (PFE) leads: $100,000 invested today pays about $519 a month at the current 6.23% yield, versus $29 a month from West Pharmaceutical Services Inc (WST) at 0.34%.
With a decade or more before the income is needed, WST's faster dividend growth (13.1% vs 10.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
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 $2,987/yr in PFE 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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