A Comprehensive Analysis of Bristol-Myers Squibb Co's Dividend History, Yield, Growth, and Future Prospects
Bristol-Myers Squibb Co (BMY, Financial) recently announced a dividend of $0.57 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-10-05. As investors eagerly anticipate this upcoming payment, it's also crucial to examine the company's dividend history, yield, and growth rates. Leveraging data from GuruFocus, we delve into Bristol-Myers Squibb Co's dividend performance and evaluate its sustainability.
Overview of Bristol-Myers Squibb Co
Bristol-Myers Squibb Co is a renowned pharmaceutical company that discovers, develops, and markets drugs for various therapeutic areas, including cardiovascular, cancer, and immune disorders. The firm is a leader in immuno-oncology, a key focus area. With nearly 70% of total sales derived from the U.S., Bristol-Myers Squibb Co relies heavily on the U.S. market compared to its peers.
Bristol-Myers Squibb Co's Dividend History
Bristol-Myers Squibb Co has consistently paid dividends since 1985, distributed quarterly. The company has increased its dividend each year since 1987, earning it the status of a dividend aristocrat, a title bestowed upon companies that have increased their dividend annually for at least the past 36 years.
Dissecting Bristol-Myers Squibb Co's Dividend Yield and Growth
Currently, Bristol-Myers Squibb Co boasts a 12-month trailing dividend yield of 3.96% and a 12-month forward dividend yield of 4.01%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, the company's annual dividend growth rate was 9.20%, decreasing to 7.20% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at 4.40%. Based on the dividend yield and five-year growth rate, the 5-year yield on cost of Bristol-Myers Squibb Co stock is approximately 5.61% today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
When evaluating the sustainability of a dividend, it's essential to consider the company's payout ratio. Bristol-Myers Squibb Co's dividend payout ratio is 0.60 as of 2023-06-30, suggesting the company retains a significant portion of its earnings for future growth and unexpected downturns. The company's profitability rank of 8 out of 10 indicates good profitability prospects, with net profit reported in 9 out of the past 10 years.
Growth Metrics and Future Outlook
Bristol-Myers Squibb Co's growth rank of 8 out of 10 suggests a solid growth trajectory relative to its competitors. The company's robust revenue per share and 3-year revenue growth rate of approximately 12.10% per year outperforms about 69.79% of global competitors, indicating a strong revenue model.
The company's 3-year EPS growth rate of approximately 13.60% per year outperforms about 53.37% of global competitors, showcasing its ability to grow earnings, a critical factor for sustaining dividends in the long run.
Conclusion
In conclusion, Bristol-Myers Squibb Co exhibits a commendable dividend performance backed by a consistent dividend payment record, promising growth rates, a sustainable payout ratio, and strong profitability and growth metrics. These factors collectively indicate a bright future for the company's dividends, making it an attractive prospect for dividend-focused investors.
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