June 18, 2025 a 07:31 am
BMY: Dividend Analysis - Bristol-Myers Squibb Company
Bristol-Myers Squibb Company (BMY) stands as a formidable entity in the pharmaceutical sector, consistently delivering robust dividends. With an impressive history of 54 years of uninterrupted dividend payments, BMY offers attractive yield characteristics alongside strategic growth facets. Despite facing periodic financial challenges, the company's strategic allocations continue to accentuate its market positioning. Future prospects hinge upon maintaining dividend growth amid evolving industry dynamics.
📊 Overview
Bristol-Myers Squibb Company operates within the pharmaceutical sector, marked by a dividend yield of 5.32%, providing an annual dividend of 2.40 USD per share. Their 54-year streak without a dividend cut or suspension underscores their dedication to shareholder returns.
| Aspect | Details |
|---|---|
| Sector | Pharmaceutical |
| Dividend Yield | 5.32% |
| Current Dividend Per Share | 2.40 USD |
| Dividend History | 54 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The steadfast history of dividends over the years is a testament to BMY's resilient financial management and commitment to shareholder value, crucial for long-term investors relying on predictable income streams.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.24 |
| 2024 | 2.90 |
| 2023 | 2.28 |
| 2022 | 2.16 |
| 2021 | 1.47 |
📈 Dividend Growth
Dividend growth accentuates a company's ability to enhance shareholder returns over time. BMY's moderate growth reflects stability in its payout strategy, with potential for enhancement.
| Time | Growth |
|---|---|
| 3 years | 0.25% |
| 5 years | 0.12% |
The average dividend growth is 0.12% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Understanding the payout ratio is vital for evaluating dividend sustainability. The EPS-based ratio at 89.92% signals high distribution relative to earnings, while the 37.31% FCF ratio suggests sufficient cash coverage.
| Key Figure | Ratio |
|---|---|
| EPS-based | 89.92% |
| Free Cash Flow-based | 37.31% |
The EPS payout ratio is high, indicating aggressive distribution practices, whereas the FCF ratio demonstrates more prudent cash allocation, highlighting sound cash flow management.
✅ Cashflow & Capital Efficiency
Analysis of cashflow and capital efficiency indicators sheds light on BMY's operating effectiveness and capital deployment strategies.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 12.16% | 11.92% | 7.80% |
| Earnings Yield | -7.80% | 7.56% | 4.13% |
| CAPEX to Operating Cash Flow | 8.22% | 8.72% | 8.56% |
| Stock-based Compensation to Revenue | 1.05% | 1.31% | 0.99% |
| Free Cash Flow / Operating Cash Flow Ratio | 91.78% | 91.28% | 91.44% |
BMY demonstrates strong capital efficiency, with significant free cash flow yields and prudent CAPEX investments that ensure robust operational sustainability.
⚠️ Balance Sheet & Leverage Analysis
Thorough assessment of the balance sheet ratios provides insights into BMY's financial solidity and leverage positioning.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 313.44% | 140.89% | 131.09% |
| Debt-to-Assets | 55.29% | 43.57% | 42.05% |
| Debt-to-Capital | 75.81% | 58.49% | 56.73% |
| Net Debt to EBITDA | 12.69x | 1.55x | 1.64x |
| Current Ratio | 1.25 | 1.43 | 1.25 |
| Quick Ratio | 1.15 | 1.31 | 1.14 |
| Financial Leverage | 5.67x | 3.23x | 3.12x |
The analysis shows heightened levels of leverage, especially concerning in 2024, but BMY maintains acceptable liquidity ratios, ensuring operational resilience.
🔎 Fundamental Strength & Profitability
Bristol-Myers Squibb's profitability metrics display effective resource utilization, critical for sustaining profitability amidst competitive market dynamics.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -54.78% | 27.27% | 20.37% |
| Return on Assets | -9.66% | 8.43% | 6.53% |
| Net Margin | -18.53% | 17.83% | 13.71% |
| EBIT Margin | -13.32% | 21.34% | 19.38% |
| EBITDA Margin | 6.66% | 43.14% | 41.66% |
| Gross Margin | 71.08% | 76.24% | 78.04% |
| R&D / Revenue | 23.10% | 20.66% | 20.60% |
While significant fluctuations are evident, BMY's robust gross and EBITDA margins reflect strong core profitability, supported by strategic R&D investments.
Price Development
🔍 Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 5 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 31 out of 40
📜 Rating
Based on a comprehensive analysis, Bristol-Myers Squibb remains a strong dividend payer with stable financial metrics. While growth is moderate, consistent dividend payouts and sound cash flow management buttress investor confidence. Suitable for income-focused portfolios seeking reliability over fast growth.