BRISTOL-MYERS SQUIBB CO (NYSE:BMY) - A High-Yield Dividend Stock Worth Considering

BRISTOL-MYERS SQUIBB CO (NYSE:BMY) stands out as a compelling choice for dividend investors, thanks to its strong dividend yield, consistent payout history, and solid profitability. The stock was identified through our Best Dividend Stocks screen, which filters for companies with high dividend ratings while maintaining decent financial health and profitability. Below, we break down why BMY could be a worthwhile addition to a dividend-focused portfolio.

Key Dividend Strengths

• Attractive Dividend Yield: BMY offers a 5.29% yield, well above the industry average of 4.20% and the S&P 500’s 2.40%. This makes it a standout for income-focused investors.
• Reliable Dividend Growth: The company has increased its dividend at an annualized rate of 11.67% over the past five years, demonstrating a commitment to rewarding shareholders.
• Long Track Record: BMY has paid dividends for at least 10 years, with no cuts in the last three years, reinforcing its reliability.

Profitability & Financial Health

• Strong Profit Margins: BMY boasts an Operating Margin of 27.11% and a Return on Equity of 31.16%, both ranking in the top tier of its industry.
• Reasonable Valuation: With a P/E ratio of 6.24, BMY trades at a discount compared to most peers and the broader market.
• Financial Stability: While BMY carries a higher debt load (Debt/Equity of 2.67), its Debt-to-FCF ratio of 3.80 suggests manageable repayment capacity.

Considerations

• High Payout Ratio: BMY currently spends 90.59% of earnings on dividends, which could limit future increases if earnings stagnate.
• Mixed Growth Outlook: While earnings are expected to grow by 38.96% annually, revenue is projected to decline slightly (-4.38%), requiring careful monitoring.

For a deeper dive into BMY’s financials, review the full fundamental report here.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.