May 03, 2025 a 03:31 am
BDX: Dividend Analysis - Becton, Dickinson and Company
The analysis of Becton, Dickinson and Company's dividend profile suggests a robust history of consistent payments. With a dividend yield of 2.41% and a long-standing record of 44 years without cuts, the company showcases reliability. Recent growth figures highlight modest but stable increases in dividends over the past years, reflecting the company's capacity to provide shareholder returns.
📊 Overview
Becton, Dickinson and Company is classified in the Healthcare sector, exhibiting a commendable dividend yield and stable growth history.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend yield | 2.41% |
| Current dividend per share | 3.80 USD |
| Dividend history | 44 years |
| Last cut or suspension | None |
🗣️ Dividend History
The company's prolonged dividend history is an indicator of financial stability and shareholder value emphasis. The 44-year streak demonstrates resilience and commitment.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.08 |
| 2024 | 3.89 |
| 2023 | 3.68 |
| 2022 | 3.50 |
| 2021 | 3.28 |
📈 Dividend Growth
The growth rate of dividends over recent years highlights the company's commitment to increasing shareholder value incrementally.
| Time | Growth |
|---|---|
| 3 years | 5.87% |
| 5 years | 5.16% |
The average dividend growth is 5.16% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
A critical metric reflecting the sustainability of company dividends is the payout ratio. A balanced payout ratio indicates a healthy balance between reinvestment and returns.
| Key Figure | Ratio |
|---|---|
| EPS-based | 73.09% |
| Free cash flow-based | 41.91% |
With an EPS-based payout ratio of 73.09%, the company maintains a conservative policy, indicating sustainability in varying market conditions.
📉 Cashflow & Capital Efficiency
Cash flows are pivotal in ensuring dividend sustainability. Capital efficiency ratios enhance insights into optimal capital allocation.
| 2024 | 2023 | 2022 |
|---|---|---|
| Free Cash Flow Yield: 4.40% | Free Cash Flow Yield: 2.86% | Free Cash Flow Yield: 2.61% |
| Earnings Yield: 2.44% | Earnings Yield: 2.00% | Earnings Yield: 2.80% |
| CAPEX to Operating Cash Flow: 19.09% | CAPEX to Operating Cash Flow: 29.24% | CAPEX to Operating Cash Flow: 36.95% |
| Stock-based Compensation to Revenue: 1.22% | Stock-based Compensation to Revenue: 1.34% | Stock-based Compensation to Revenue: 1.23% |
| Free Cash Flow / Operating Cash Flow Ratio: 80.88% | Free Cash Flow / Operating Cash Flow Ratio: 70.76% | Free Cash Flow / Operating Cash Flow Ratio: 63.05% |
The stability in cash flow and capital efficiency ensures robustness in dividend sustainability and capital return capabilities.
Balance Sheet & Leverage Analysis
Analyzing leverage and balance sheet ratios is vital for understanding financial strength and risk levels.
| 2024 | 2023 | 2022 |
|---|---|---|
| Debt-to-Equity: 0.777 | Debt-to-Equity: 0.616 | Debt-to-Equity: 0.635 |
| Debt-to-Assets: 35.10% | Debt-to-Assets: 30.08% | Debt-to-Assets: 30.35% |
| Debt-to-Capital: 43.72% | Debt-to-Capital: 38.10% | Debt-to-Capital: 38.84% |
| Net Debt to EBITDA: 3.82 | Net Debt to EBITDA: 3.38 | Net Debt to EBITDA: 3.51 |
| Current Ratio: 1.17 | Current Ratio: 1.31 | Current Ratio: 1.04 |
| Quick Ratio: 0.740 | Quick Ratio: 0.814 | Quick Ratio: 0.630 |
| Financial Leverage: 2.21 | Financial Leverage: 2.05 | Financial Leverage: 2.09 |
The company's leverage and balance metrics depict a stable financial foundation supporting sustained operations and growth.
Fundamental Strength & Profitability
Profitability ratios assess the efficiency of a company in generating profit from its operations, critical to evaluating investment viability.
| 2024 | 2023 | 2022 |
|---|---|---|
| Return on Equity: 6.59% | Return on Equity: 5.75% | Return on Equity: 7.03% |
| Return on Assets: 2.98% | Return on Assets: 2.81% | Return on Assets: 3.36% |
| Margins (Net): 8.45% | Margins (Net): 7.66% | Margins (Net): 9.43% |
| EBIT Margin: 12.55% | EBIT Margin: 10.91% | EBIT Margin: 11.58% |
| EBITDA Margin: 23.88% | EBITDA Margin: 22.07% | EBITDA Margin: 22.72% |
| Gross Margins: 45.22% | Gross Margins: 42.17% | Gross Margins: 44.92% |
| R&D to Revenue: 5.90% | R&D to Revenue: 6.39% | R&D to Revenue: 6.66% |
The strong profitability metrics indicate effective cost management and pricing strategy, supporting enhanced returns.
Price Development
Dividend Scoring System
| Criteria | Description | Score |
|---|---|---|
| Dividend yield | Moderate yield at 2.41% | 3 |
| Dividend Stability | 44 years of consistent payments | 5 |
| Dividend growth | Steady growth | 4 |
| Payout ratio | Moderate EPS ratio | 4 |
| Financial stability | Strong balance sheet | 3 |
| Dividend continuity | Unbroken payment record | 5 |
| Cashflow Coverage | Robust cash flow ratios | 3 |
| Balance Sheet Quality | Well-leveraged | 3 |
Overall Score: 30/40
🏅 Rating
Becton, Dickinson and Company presents a reliable investment for dividend-focused investors, with a commendable history of consistent and growing payouts backed by solid financials.