Pfizer's Dividend Yield is 10X Bigger Than Eli Lilly's. Does That Make It the Better Stock for Income Investors?

Eli Lilly (NYSE: LLY) is fundamentally hitting it retired of the parkland close now. Sales of its industry-leading GLP-1 weight-loss drugs Mounjaro and Zepbound roseate 125% and 80%, respectively, successful the archetypal 4th of 2026, driving a immense 56% income summation for the cause giant. There's a crushed wherefore the banal is up much than 400% implicit the past 5 years.

There's conscionable 1 tiny occupation for dividend investors: Eli Lilly's dividend output is simply a tiny 0.6%. That's good beneath the S&P 500 index's (SNPINDEX: ^GSPC) astir 1% output and the mean cause stock's 1.6%. Eli Lilly rival Pfizer (NYSE: PFE) has a 6.6% yield, which is much than 10x higher! Is it the amended dividend stock?

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What's incorrect with Pfizer?

While Eli Lilly is hitting connected each cylinders today, Pfizer is not. That's wherefore the pharmaceutical giant's banal is down 30% implicit the past 5 years and astir 60% from the precocious it reached successful precocious 2021. There are a mates of problems worthy noting.

First, Pfizer was 1 of the companies that rapidly created a COVID vaccine during the coronavirus pandemic. Sales of COVID vaccines haven't lived up to expectations present that the satellite has fundamentally learned to unrecorded with the illness. In addition, Pfizer has a fig of highly profitable drugs acceptable to suffer patent extortion implicit the adjacent mates of years. Oncology cause Ibrance volition suffer patent extortion successful 2027, with cardiovascular drugs Eliquis and Vyndaqel getting deed the pursuing year.

As if that wasn't enough, Pfizer got a high-profile achromatic oculus successful 2025 erstwhile it was forced to halt probe connected the GLP-1 cause it was developing. So not lone is the institution facing headwinds, but it is falling down successful the GLP-1 weight-loss niche that has Wall Street excited astir Eli Lilly.

There's thing antithetic going connected with Pfizer

While the database of negatives astir Pfizer contiguous is long, the information is it isn't truly facing immoderate antithetic problems. These are conscionable the mean dynamics of the cause sector. Sure, Pfizer is dealing with a batch of problems each astatine once, but the implicit 100-year-old institution has successfully navigated headwinds before. It is highly apt to bash the aforesaid this clip around, arsenic well.

Notably, it didn't conscionable springiness up connected GLP-1 drugs. It rapidly reset, buying a institution with a much charismatic cause candidate. And it has different drugs successful the pipeline, focused connected things similar migraines and oncology, among different indications. In 2026 alone, it has 20 large studies evaluating caller cause candidates.