<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Pfizer has a higher forward dividend yield than Bristol Myers Squibb, but the latter beats the former in most other criteria.</li><li>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.</li><li>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.</li><li>10 stocks we like better than Bristol Myers Squibb ›</li></ul>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 &#34;Indispensable Monopoly&#34; 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.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MjI4My9maW5hbmNpYWwtaGVhbHRoLXN0ZXRob3Njb3BlLW1vbmV5LWNhc2gtaHVuZHJlZC1iaWxscy1tZWRpY2FsLWhlYWx0aGNhcmUtMTIwMHg4MDMtMzc0MDNiNi5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="468" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MjI4My9maW5hbmNpYWwtaGVhbHRoLXN0ZXRob3Njb3BlLW1vbmV5LWNhc2gtaHVuZHJlZC1iaWxscy1tZWRpY2FsLWhlYWx0aGNhcmUtMTIwMHg4MDMtMzc0MDNiNi5qcGcmdz03MDA"/>Image source: Getty Images. <h2>Dividend wars: Bristol Myers Squibb vs. Pfizer</h2>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.This should be apparent to you as well, once you dive into dividend-related metrics such as each stock's payout ratio. Bristol Myers Squibb has a payout ratio of around 40%, whereas Pfizer's payout ratio is over 60%. In other words, while the former's payout ratio is within the healthy range, Pfizer's payout ratio puts it on the cusp of being too high to be sustainable over the long term.At this level, Pfizer generates enough earnings to sustain the dividend, but with so much cash flowing out as dividends, this leaves less capital to pay down debt, fund organic growth, or make new acquisitions. Besides the payout ratio metric, Bristol Myers Squibb also beats Pfizer on dividend growth. Both companies have a similar number of years of consecutive dividend growth.Bristol Myers Squibb has increased its dividend 18 years in a row, while Pfizer has grown its dividend 16 years in a row. However, over the past decade, average annual dividend growth for the former has outpaced the latter, with Bristol Myers' dividend increasing by an average of 5.3%, versus 4.4% for Pfizer. Hence, even if Pfizer manages to avoid a dividend cut, in time, the yield gap between these two blue chip dividend stocks will continue to narrow.<h2>Which one comes out on top?</h2>Bristol Myers Squibb may beat Pfizer in terms of dividend durability and growth potential, but as the saying goes, past performance is not indicative of future results. Both companies have similar short-term growth forecasts. Analyst forecasts call for Pfizer's sales to fall 1.4% this year, and by 3.8% in 2027, with earnings rising 8.7% this year, but essentially flatlining next year.As for Bristol Myers Squibb, analyst forecasts call for 2026 and 2027 sales to decline 1.8% and 2.3%, respectively, with earnings rising by 3% this year but declining 2.2% next year. That said, as seen from the anticipated 2026 results, both Pfizer and Bristol Myers may be on track to continue delivering numbers that exceed expectations. Both companies have expanded their pipelines, as well as pursued cost-cutting measures.Investors continue to take a &#34;wait and see&#34; approach. Since January, Bristol Myers and Pfizer shares have generated total returns of 3.2% and 6.1%, respectively. Both stocks also continue to trade at low valuations, with both stocks trading for just under 9 times forward earnings.So, which of these healthcare dividend stocks is the better buy?? Both companies are facing similar challenges and uncertainty, but Bristol Myers Squibb scores well on dividend growth and durability; consider it the stronger choice.<h2>Should you buy stock in Bristol Myers Squibb right now?</h2> Before you buy stock in Bristol Myers Squibb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristol Myers Squibb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $449,393!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,366,006!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 4, 2026. Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Pfizer. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

While Pfizer offers a higher forward dividend yield (6.7%) than Bristol Myers Squibb (4.6%), BMY is considered the better high-yield choice due to superior dividend durability and growth. BMY's lower payout ratio (~40% vs. Pfizer's >60%) suggests greater sustainability, and it has outpaced Pfizer in average annual dividend growth over the past decade. Despite similar short-term sales forecasts and challenges, BMY's stronger financial health makes it the preferred option for income-focused investors.

- Pfizer has a higher forward dividend yield at 6.7% compared to Bristol Myers Squibb's 4.6%, but Bristol Myers shows stronger dividend growth and durability due to a healthier payout ratio of approximately 40% versus Pfizer's over 60%.  
- Both companies are projected to face income challenges with similar short-term growth forecasts, and Bristol Myers has outperformed Pfizer in average annual dividend growth over the past decade.  
- Despite Pfizer's current yield advantage, investors may find Bristol Myers Squibb to be the stronger choice for long-term dividend sustainability.

Better High-Yield Dividend Stock to Buy: Bristol Myers Squibb or Pfizer?