July 23, 2026 a 03:31 pm

BMY: Dividend Analysis - Bristol-Myers Squibb Company

📊 Overview

Bristol-Myers Squibb is a prominent player in the healthcare sector, primarily engaged in the discovery and distribution of pharmaceuticals. The company offers investors an attractive dividend yield of 4.32%, with its current dividend per share positioned at $2.47. Maintaining a 55-year record of consecutive dividend payments, BMY has not experienced a recent dividend cut or suspension, indicating potential for reliable future payouts.

Detail	Data
Sector	Pharmaceuticals
Dividend Yield	4.32%
Current Dividend Per Share	$2.47
Dividend History	55 years
Last Cut/Suspension	None

🗣️ Dividend History

In examining the historical trajectory of BMY's dividend payouts, investors can derive a sense of security regarding the company’s commitment to returning value. This track record is a testament to BMY’s resilient business model and adaptability to economic fluctuations. Reliable dividend disbursements underscore the firm’s robust financial management and shareholder-friendly policies, critical for long-term investment perspectives.

Year	Dividend Per Share (USD)
2026	1.89
2025	2.48
2024	2.40
2023	2.28
2022	2.16

📈 Dividend Growth

Analyzing the growth of dividends is crucial for understanding potential increases in shareholder value over time. BMY’s dividend growth over the past 3 years stands at 4.71%, while its 5-year growth settles at 1.61%. These figures suggest a pattern of slow but consistent enhancement in dividends, which could potentially escalate further with strategic expansions or innovations.

Time	Growth
3 years	4.71%
5 years	1.61%

The average dividend growth is 1.61% over the past 5 years. This shows moderate but steady dividend growth, emphasizing BMY's dedication to incremental shareholder value improvement.

📉 Payout Ratio

The payout ratio provides insight into the sustainability of a company’s dividend payments relative to its earnings and free cash flow. Current figures indicate an EPS-based payout of 69.43% and an FCF-based payout of 42.39%. Such metrics imply prudent financial management, ensuring dividends are funded by both profits and cash flow without excessive strain.

Key Figure	Ratio
EPS-based	69.43%
Free Cash Flow-based	42.39%

The payout ratios are conservative, especially the 42.39% FCF-based payout, indicating that BMY maintains robust dividend coverage and has room for further dividend increases.

✅ Cashflow & Capital Efficiency

Evaluating BMY’s cash flow and capital usage systems reveals vital insights into its operational efficiency and potential longevity. Key measures such as free cash flow yield and earnings yield are a testament to the company’s ability to generate substantial returns on invested capital, thereby driving shareholder value and supporting dividend stability.

Metrics	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%

BMY's cash flow stability is reflected in its consistent free cash flow yields and capital efficiency, demonstrating the company's adept management of resources to sustain its operational demands whilst securing shareholder returns.

⚠️ Balance Sheet & Leverage Analysis

A stable balance sheet, with carefully managed leverage, signals a company’s readiness for future investments and market challenges. BMY presents a mix of ratios that highlight a cautious yet ambitious approach to debt and equity management.

Leverage Metrics	2025	2024	2023
Debt-to-Equity	2.55	3.13	1.41
Debt-to-Assets	52.35%	55.28%	43.57%
Debt-to-Capital	71.85%	75.81%	58.49%
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

BMY's financial leverage has increased over the years, indicating aggressive expansion strategies. However, prudent management assures that short-term solvency remains sound, as evidenced by consistent current and quick ratios.

✅ Fundamental Strength & Profitability

Profitability metrics are crucial to determine how effectively a company is generating returns on its assets and equity. BMY’s strong margin performance signals effective cost management, which is essential for sustaining its competitive advantage and facilitating dividend payouts.

Profitability Metrics	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	67.65%	56.80%	56.34%
Research & Development to Revenue	20.68%	20.25%	20.46%

BMY has maintained a robust profit margin, which signifies its proficiency in covering production costs while delivering satisfactory returns. The consistent focus on research and innovation reinforces its future growth prospects and ability to service dividends.

📉 Price Development

Dividend Scoring System

Criteria	Score	Score Bar
Dividend Yield	4
Dividend Stability	5
Dividend Growth	3
Payout Ratio	4
Financial Stability	4
Dividend Continuity	5
Cashflow Coverage	4
Balance Sheet Quality	4

Rating

Bristol-Myers Squibb Company presents a robust profile for dividend-focused investors, marked by a high dividend yield and remarkable stability. While growth potential in dividends remains modest, the overall sustainability is solidified by a sound payout ratio and well-managed leverage. Thus, BMY could be seen as a genuine contender for those seeking reliable income with a strong backing in financial health. The total score of 33 out of 40 reflects its commendable dividend investment appeal.