Better High-Yield Dividend Stock to Buy: Bristol Myers Squibb or Pfizer?
Written by Thomas Niel for The Motley Fool -> Pfizer has a higher forward dividend yield than Bristol Myers Squibb, but the latter beats the former in most other criteria. Bristol Myers Squibb has a stronger dividend growth track record, and based on its payout ratio, appears t
Pfizer has a higher forward dividend yield than Bristol Myers Squibb, but the latter beats the former in most other criteria.
Bristol Myers Squibb has a stronger dividend growth track record, and based on its payout ratio, appears to have greater dividend durability potential as well.
As both companies face similar challenges, metrics like dividend growth and sustainability are the best way to determine which of the two makes for the better dividend stock.
When it comes to pharmaceutical stocks and yield, Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) stand out. However, when deciding which of the two is the better high-yield dividend stock , you need to consider numerous criteria, not just the raw yield itself.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
When it comes to today's yield, Pfizer is the clear victor. However, when considering whether the higher yield is sustainable, factors such as dividend payout ratios and earnings forecasts start to cast doubt.
With this in mind, let's examine the dividend health of both companies to get a better idea of which of the two is the better choice for income-focused long-term investors.
At current prices, Bristol Myers Squibb has a forward dividend yield of around 4.6%. This clearly trails Pfizer's forward yield, which currently comes in at 6.7%. However, the fact that Pfizer's forward yield is so high, especially for a healthcare stock , should signal to you that the market has its own concerns about dividend durability.
