July 03, 2026 a 03:31 am
BMY: Dividend Analysis - Bristol-Myers Squibb Company
Bristol-Myers Squibb Company, a stalwart in the pharmaceutical sector, showcases a robust dividend profile with a yield of 4.32%. With 55 years of uninterrupted dividend payouts and a strong sector position, it attracts income-focused investors. Despite moderate growth and a high payout ratio, its legacy of stability offers a compelling choice for conservative portfolios.
📊 Overview
Bristol-Myers Squibb operates in the Pharmaceutical sector, boasting a current dividend yield of 4.32% and a dividend per share of USD 2.47. It has a commendable track record of 55 years of continuous dividend payments, highlighting its commitment to returning value to shareholders. The last dividend cut or suspension was several decades ago, emphasizing its stable payout history.
| Metric | Detail |
|---|---|
| Sector | Pharmaceuticals |
| Dividend yield | 4.3179% |
| Current dividend per share | 2.47 USD |
| Dividend history | 55 years |
| Last cut or suspension | None |
🗣️ Dividend History
The longevity of the dividend history for Bristol-Myers Squibb is indicative of its firm financial health and capabilities. It empowers potential investors with the confidence of probable future returns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.89 |
| 2025 | 2.48 |
| 2024 | 2.40 |
| 2023 | 2.28 |
| 2022 | 2.16 |
📈 Dividend Growth
Tracking the growth of dividends provides insight into the company’s commitment to increasing shareholder returns. Bristol-Myers Squibb has a moderate growth trajectory, reflecting consistency and shareholder value enhancement potential.
| 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 is a critical metric in assessing how sustainable a company's dividend payouts are. High payout ratios may indicate less room for future dividend increases or challenging obligations during downturns.
| Key figure | Ratio |
|---|---|
| EPS-based | 69.43% |
| Free cash flow-based | 42.39% |
The EPS payout ratio of 69.43% suggests the company uses over half of its earnings to pay dividends—a healthy balance highlighting both shareholder returns and reinvestment potential.
Cashflow & Capital Efficiency
An analysis of cash flows and capital efficiency provides insight into financial stability and potential future growth. Bristol-Myers Squibb's moderate free cash flow yield and investment back into operations demonstrate a company balancing current payouts with sustainable growth.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 11.67% | 12.16% | 11.92% |
| Earnings Yield | 6.41% | -7.80% | 7.56% |
| CAPEX to Operating Cash Flow | 9.26% | 8.22% | 8.72% |
| Stock-based Compensation to Revenue | 1.15% | 1.05% | 1.15% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.74% | 91.78% | 91.28% |
These metrics indicate Bristol-Myers Squibb's prudent management of cash, ensuring adequate coverage of dividends while funding essential growth investments.
Balance Sheet & Leverage Analysis
Analyzing balance sheet metrics helps evaluate a company’s financial risk and capital structure capabilities. Bristol-Myers Squibb maintains a solid financial position with adequate leverage metrics, optimizing growth without overextending financial commitments.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 2.55 | 3.13 | 1.41 |
| Debt-to-Assets | 0.52 | 0.55 | 0.44 |
| Debt-to-Capital | 0.72 | 0.76 | 0.58 |
| Net Debt to EBITDA | 2.54 | 12.90 | 1.55 |
| Current Ratio | 1.25 | 1.25 | 1.43 |
| Quick Ratio | 1.14 | 1.15 | 1.31 |
| Financial Leverage | 4.87 | 5.67 | 3.23 |
These figures validate a well-managed balance sheet, capable of sustaining operational and strategic commitments while maintaining liquidity.
Fundamental Strength & Profitability
Analyzing core profitability metrics elucidates the company's adeptness at generating profit relative to expenses and asset use. Bristol-Myers Squibb's returns showcase strong performance and alignment with strategic growth priorities.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 38.18% | -54.78% | 27.27% |
| Return on Assets | 7.83% | -9.66% | 8.43% |
| Margins: Net | 14.63% | -18.53% | 17.83% |
| Margins: EBIT | 22.17% | -13.32% | 21.34% |
| Margins: EBITDA | 30.18% | 6.56% | 43.03% |
| Margins: Gross | 67.64% | 56.80% | 56.34% |
| Research & Development to Revenue | 20.68% | 20.25% | 20.46% |
This performance demonstrates a strong profitability stance and an emphasis on returns-driven growth, bolstering investor confidence.
Price Development
📉 Dividend Scoring System
| Criteria | Score | Description |
|---|---|---|
| Dividend yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend growth | 3/5 | |
| Payout ratio | 4/5 | |
| Financial stability | 4/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 4/5 |
Total Score: 33/40
Rating
Taking into account its sustained dividend history, moderate growth, and relative financial stability, Bristol-Myers Squibb Company is rated as a strong choice for income investors looking for stable and predictable dividend returns. It is recommended for those seeking consistent income rather than aggressive growth.
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