UNH vs WST: Dividend Yield, Growth & Safety Comparison
Unitedhealth Group Inc (UNH) and West Pharmaceutical Services Inc (WST) are both in the Health Care sector, making them natural rivals for dividend investors. UNH offers a significantly higher 3.20% yield compared to WST's 0.34%, a gap of 2.85%. For dividend growth, WST leads with a 5-year CAGR of 13.1% versus UNH's 11.7%. Both stocks carry a "Safe" dividend safety rating. UNH is a Dividend Contender with 16 years of consecutive increases.
Key Metrics Comparison
| Metric | UNH | WST |
|---|
| Dividend Yield | 3.20% | 0.34% |
| Annual Dividend | $8.73 | $0.84 |
| 5-Year CAGR | 11.7% | 13.1% |
| Payout Ratio | 45% | 12% |
| Consecutive Years | 16 | 0 |
| Price | $291.12 | $248.03 |
Yield Comparison
Unitedhealth Group Inc (UNH) currently yields 3.20%, which is solid for the broader market. That's 2.85% more than West Pharmaceutical Services Inc (WST), which yields 0.34%. In dollar terms, UNH pays $8.73/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 UNH's 11.7%. 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%. 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
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. 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 UNH's 45%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in UNH generates approximately $320/year in dividend income, compared to $34/year from WST — a difference of $286/year. At $100,000, that gap widens to $2860/year.
Verdict
- Best for income: UNH
- Best for growth: WST
- Best for safety: WST
Frequently Asked Questions
Which has a higher dividend yield, UNH or WST?
Unitedhealth Group Inc (UNH) has a higher dividend yield of 3.20% compared to West Pharmaceutical Services Inc (WST) at 0.34%.
Is UNH 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 Unitedhealth Group Inc's 11.7%.
Which is safer for dividend income, UNH or WST?
Unitedhealth Group Inc's dividend safety is rated "Safe" while West Pharmaceutical Services Inc is rated "Safe." The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x. 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 UNH vs WST generate?
A $10,000 investment in UNH generates approximately $320/year in dividends, while the same amount in WST generates about $34/year.
Is UNH or WST a Dividend Aristocrat?
Unitedhealth Group Inc is a Dividend Contender with 16 consecutive years of increases. West Pharmaceutical Services Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, UNH or WST?
West Pharmaceutical Services Inc has a lower payout ratio of 12% compared to Unitedhealth Group Inc's 45%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
UNH vs WST: which is better for retirement income?
It depends on your priorities. UNH for current income, WST for dividend growth, WST for safety. Many retirement investors hold both for diversification.
UNH Dividend Analysis | WST Dividend Analysis | All Comparisons | Comparison Tool