July 26, 2025 a 07:46 am
BDX: Dividend Analysis - Becton, Dickinson and Company
📊 Becton, Dickinson and Company (BDX) presents a compelling analysis when examining its dividend profile. With a legacy of 44 years of uninterrupted dividend payments, BDX is positioned as a reliable option for dividend-focused investors. A dividend yield of approximately 2.25% complements a history of prudent financial management, though recent growth rates are modest. Financial stability and a comprehensive understanding of operational cash flows enhance its attractiveness as a steady income provider.
Overview
📜 Becton, Dickinson and Company operates within the Healthcare sector, maintaining a solid dividend history with significant longevity. The company's dividend yield and policies reflect its strong financials and commitment to shareholder returns.| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 2.25% |
| Current Dividend Per Share | 3.80 USD |
| Dividend History | 44 years |
| Last Cut or Suspension | None |
Dividend History
📈 The consistent dividend payments over decades make dividends from BDX appealing for investors who value reliability. Understanding the trajectory of these payments can provide insights into financial stability and management's commitment to shareholder returns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 3.12 |
| 2024 | 3.89 |
| 2023 | 3.68 |
| 2022 | 3.50 |
| 2021 | 3.28 |
Dividend Growth
📉 The modest yet steady growth in dividends over the past few years suggests a stable outlook. This aligns with a long-term strategy for consistent returns.| 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
💰 The payout ratio provides insights into the sustainability of dividend payments. A high payout ratio, particularly from EPS earnings, indicates a substantial proportion of earnings returned to shareholders, reflecting the company's stable use of its earnings.| Key figure | Ratio |
|---|---|
| EPS-based | 73.09% |
| Free cash flow-based | 42.01% |
The EPS payout ratio at 73.09% and FCF payout ratio at 42.01% suggest a significant commitment to returning profits to shareholders, though with careful attention to cash flow sustainability.
Cashflow & Capital Efficiency
💼 Analyzing cash flow yields and capital efficiency metrics indicates operational health and capital management proficiency, central to sustainable dividend payments.| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 2.61% | 2.86% | 4.40% |
| Earnings Yield | 2.80% | 2.00% | 2.44% |
| CAPEX to Operating Cash Flow | 36.95% | 29.24% | 19.09% |
| Stock-based Compensation to Revenue | 1.23% | 1.34% | 1.22% |
| Free Cash Flow / Operating Cash Flow Ratio | 63.05% | 70.76% | 80.88% |
The data highlights stable cash flow management and underscored capital efficiency ratios, which underpin sustainable shareholder returns.
Balance Sheet & Leverage Analysis
📊 Understanding leverage and liquidity is essential for assessing financial risk, particularly how a company can sustain its debt in adverse conditions.| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 0.635 | 0.616 | 0.777 |
| Debt-to-Assets | 0.303 | 0.301 | 0.351 |
| Debt-to-Capital | 0.388 | 0.381 | 0.437 |
| Net Debt to EBITDA | 3.51 | 3.38 | 3.82 |
| Current Ratio | 1.04 | 1.31 | 1.17 |
| Quick Ratio | 0.63 | 0.81 | 0.74 |
| Financial Leverage | 2.09 | 2.05 | 2.21 |
Stability in leverage ratios supports financial health, while adequate liquidity ratios ensure BDX can comfortably meet short-term obligations, enhancing its resilience.
Fundamental Strength & Profitability
🚀 These metrics underscore the inherent profitability and operational efficiency, foundational to ongoing robust financial performance.| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 7.03% | 5.75% | 6.59% |
| Return on Assets | 3.36% | 2.81% | 2.98% |
| Margins: Net | 9.43% | 7.66% | 8.45% |
| Margins: EBIT | 11.58% | 10.91% | 12.55% |
| Margins: EBITDA | 22.72% | 22.07% | 23.88% |
| Margins: Gross | 44.92% | 42.17% | 45.22% |
| Research & Development to Revenue | 6.66% | 6.39% | 5.90% |
Consistently strong profitability ratios such as ROE and operating margins affirm BDX's ability to generate returns for shareholders while maintaining operational efficiency.
Price Development
📈 Analyzing price development charts provides insight into market sentiments and stock performance trajectory over recent years.
Dividend Scoring System
🏆 The Dividend Scoring System evaluates BDX's dividend profile based on several key categories.| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40