Is Bristol Myers Squibb's Dividend Too Good to Be True? Here's My Honest Answer
Yahoo Finance ·
When dividend yields start to creep up, it's worth taking a closer look for any potential warning signs. Bristol Myers Squibb ( BMY +0.94% ) is a leading pharmaceutical company and has been a high-yield dividend stock for some time. Shares have averaged a dividend yield of 3.4% over the past decade. However, that yield has been abnormally high for most of the past two years. The stock yields 4.1% today, and it's been as high as 6% over the past 24 months. Is the dividend simply too good to be true at this point? My take is that the dividend is fine right now, but that you'll also need to watch out for potential hurdles as key drugs lose patent exclusivity over the next few years. There's a famous expression that money talks. Examining the financials is the best way to check whether a company can actually afford its dividend. Bristol Myers Squibb pays a quarterly dividend totaling $2.52 per share for the year. Wall Street analysts estimate that it will earn $6.34 per share this year, enough to cover the dividend 2.5 times over.
AI 시장 분석
Bristol Myers Squibb (BMY) has high interest rates, which are impacting the stock price. With a 3.4% interest rate, higher than the 10-year average, it is drawing investor attention. However, Wall Street analysts expect a profit that can cover the interest rate, which is 2.5 times higher.
상승 영향
- Pharmaceuticals — The high interest rate of Bristol Myers Squibb (BMY) may lead to an increase in stock price. However, the high interest rate may also lead to a decrease in stock price.
하락 영향
- Pharmaceuticals — The high interest rate of Bristol Myers Squibb (BMY) may lead to a decrease in stock price.
DYAX 전담 분석
The high interest rate of 3.4% is higher than the 10-year average and is impacting the stock price. However, Wall Street analysts expect a profit that can cover the interest rate, which is 2.5 times higher.
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