PFE vs WST: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | PFE | WST |
|---|
| Dividend Yield | 6.23% | 0.34% |
| Annual Dividend | $1.72 | $0.84 |
| 5-Year CAGR | 10.1% | 13.1% |
| Payout Ratio | 1% | 12% |
| Consecutive Years | 0 | 0 |
| Price | $27.80 | $248.03 |
Yield Comparison
Pfizer Inc (PFE) currently yields 6.23%, which is attractive for the broader market. That's 5.88% more than West Pharmaceutical Services Inc (WST), which yields 0.34%. In dollar terms, PFE pays $1.72/share annually versus WST's $0.84/share.
Dividend Growth
Over the past five years, WST has grown its dividend at a 13.1% 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%. 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'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. 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. PFE's payout ratio of 1% is more conservative than WST's 12%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PFE generates approximately $623/year in dividend income, compared to $34/year from WST — a difference of $589/year. At $100,000, that gap widens to $5890/year.
Verdict
- Best for income: PFE
- Best for growth: WST
- Best for safety: PFE
Frequently Asked Questions
Which has a higher dividend yield, PFE or WST?
Pfizer Inc (PFE) has a higher dividend yield of 6.23% compared to West Pharmaceutical Services Inc (WST) at 0.34%.
Is PFE or WST a better dividend growth stock?
West Pharmaceutical Services Inc has the stronger dividend growth with a 5-year CAGR of 13.1%, compared to Pfizer Inc's 10.1%.
Which is safer for dividend income, PFE or WST?
Pfizer Inc's dividend safety is rated "Safe" while West Pharmaceutical Services 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 12% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 8.0x.
How much income does $10,000 in PFE vs WST generate?
A $10,000 investment in PFE generates approximately $623/year in dividends, while the same amount in WST generates about $34/year.
Which has a lower payout ratio, PFE or WST?
Pfizer Inc has a lower payout ratio of 1% compared to West Pharmaceutical Services Inc's 12%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PFE vs WST: which is better for retirement income?
It depends on your priorities. PFE for current income, WST for dividend growth, PFE for safety. Many retirement investors hold both for diversification.
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