June 09, 2026 a 03:31 am
BMY: Dividend Analysis - Bristol-Myers Squibb Company
The Bristol-Myers Squibb Company stands as a formidable player in the healthcare sector, maintaining a solid track record in its dividend history. With a substantial dividend yield, it remains an attractive option for income-focused investors. The company's payout practices, bolstered by a strong earnings base, demonstrate a balanced approach to capital allocation.
📊 Overview
Bristol-Myers Squibb operates in the highly competitive healthcare sector. The firm has consistently provided dividends to its shareholders, underlining its commitment to returning capital. The figures below present a snapshot of its current dividend profile:
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend yield | 4.19% |
| Current dividend per share | $2.47 |
| Dividend history | 55 years |
| Last cut or suspension | None |
📈 Dividend History
The historical dividend practices of Bristol-Myers Squibb illustrate its long-term strategy and commitment to rewarding its shareholders. These dividends serve as a sign of financial health and operational strength.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.26 |
| 2025 | 2.48 |
| 2024 | 2.40 |
| 2023 | 2.28 |
| 2022 | 2.16 |
📉 Dividend Growth
Tracking the growth of dividends over the years gives insights into potential future increases, aligning with the company's growth and profitability aspirations.
| Time | Growth |
|---|---|
| 3 years | 4.71% |
| 5 years | 1.61% |
The average dividend growth is 1.61% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio demonstrates the company's capacity to sustain dividend payments from earnings and cash flow, providing insights into its fiscal discipline.
| Payout Ratio Type | Percentage |
|---|---|
| EPS-based | 69.43% |
| Free cash flow-based | 42.39% |
An EPS payout ratio of 69.43% suggests a balanced approach, targeting sustainable payouts, whereas the free cash flow payout of 42.39% demonstrates strong cash flow support for dividends.
💰 Cashflow & Capital Efficiency
An analysis of cash flow metrics provides insights into how capital is generated and reinvested within the company, critical for long-term evaluations.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 11.92% | 12.16% | 11.67% |
| Earnings Yield | 7.56% | -7.80% | 6.40% |
| CAPEX to Operating Cash Flow | 8.72% | 8.22% | 9.26% |
| Stock-based Compensation to Revenue | 1.15% | 1.05% | 1.15% |
| Free Cash Flow / Operating Cash Flow Ratio | 91.28% | 91.78% | 90.74% |
The healthy free cash flow yield coupled with sound operating cash flow ratios underscores the company's efficient financial management, with capital deployed effectively towards sustainable growth.
🏦 Balance Sheet & Leverage Analysis
Analyzing BMY's balance sheet and leverage ratios reveals its ability to manage debt and maintain liquidity and solvency, which are crucial for assessing financial robustness.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.41 | 3.13 | 2.55 |
| Debt-to-Assets | 43.57% | 55.29% | 52.35% |
| Debt-to-Capital | 58.49% | 75.81% | 71.85% |
| Net Debt to EBITDA | 1.55 | 12.90 | 2.54 |
| Current Ratio | 1.43 | 0 | 1.25 |
| Quick Ratio | 1.31 | 1.15 | 1.14 |
| Financial Leverage | 3.23 | 5.67 | 4.87 |
The leverage ratios illustrate a robust balance sheet with effective management of financial obligations. Despite the significant liquidity during 2023, consistent leverage levels suggest strategic debt decisions.
📈 Fundamental Strength & Profitability
The fundamental strength of BMY, indicated by profitability ratios, sheds light on its operational efficiency and ability to convert revenue into profits.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 27.27% | -54.78% | 38.18% |
| Return on Assets | 8.43% | -9.66% | 7.83% |
| Net Margin | 17.83% | -18.53% | 14.63% |
| EBIT Margin | 21.34% | -13.32% | 22.17% |
| EBITDA Margin | 43.03% | 6.56% | 30.18% |
| Gross Margin | 56.34% | 56.79% | 67.65% |
| R&D to Revenue | 20.46% | 20.25% | 20.67% |
BMY's profitability ratios highlight its competent operations amidst varying market conditions, with a strategic emphasis on innovative research and efficient operations facilitating sustainable returns.
💹 Price Development
📏 Dividend Scoring System
| Criterion | Score | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🗣️ Rating
In conclusion, Bristol-Myers Squibb exhibits a strong commitment to shareholder returns, demonstrated by its reliable dividend payments and financial prudence. Despite certain challenges, the company maintains a robust balance sheet, effective cash flow management, and consistent dividend policies, making it an attractive choice for investors seeking stability and gradual growth in their portfolios.
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