Is NYSE:BMY suited for dividend investing?

Take a closer look at BRISTOL-MYERS SQUIBB CO (NYSE:BMY), a stock of interest to dividend investors uncovered by our stock screener. NYSE:BMY excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Analysis for NYSE:BMY

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:BMY has been assigned a 7 for dividend:

• BMY has a Yearly Dividend Yield of 4.45%, which is a nice return.
• Compared to an average industry Dividend Yield of 4.36, BMY pays a better dividend. On top of this BMY pays more dividend than 96.20% of the companies listed in the same industry.
• BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
• The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
• BMY has been paying a dividend for at least 10 years, so it has a reliable track record.
• BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for NYSE:BMY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:BMY, the assigned 5 reflects its health status:

• Looking at the Altman-Z score, with a value of 2.16, BMY is in the better half of the industry, outperforming 69.02% of the companies in the same industry.
• BMY has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as BMY would need 3.56 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 3.56, BMY belongs to the best of the industry, outperforming 88.59% of the companies in the same industry.

Understanding NYSE:BMY's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:BMY has earned a 6 out of 10:

• BMY has a better Return On Assets (-9.66%) than 70.11% of its industry peers.
• BMY has a Return On Invested Capital of 13.21%. This is amongst the best in the industry. BMY outperforms 90.22% of its industry peers.
• The 3 year average ROIC (12.29%) for BMY is below the current ROIC(13.21%), indicating increased profibility in the last year.
• BMY has a better Operating Margin (23.90%) than 90.22% of its industry peers.
• Looking at the Gross Margin, with a value of 75.26%, BMY belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.

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For an up to date full fundamental analysis you can check the fundamental report of BMY

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.