Dividend Growth Stock of the Month for August 2021 BristolMyers from dividendsandincome.com
Bristol-Myers Squibb's Dividend History
Bristol-Myers Squibb (NYSE: BMY) is a global biopharmaceutical company that has been in operation since the 19th century. Throughout its long and storied history, BMY has been a consistent dividend payer, with a track record of reliable dividend growth. BMY has been paying dividends since 1938, making it one of the oldest dividend payers in the healthcare sector. The company's dividend payout ratio has fluctuated over the years, but it has consistently been within a range of 25-35% of net income.
The 2019 Dividend Increase
In 2019, BMY raised its dividend by 8%. This was the fourth consecutive year of dividend increases, and it brought the dividend yield to 2.6%. BMY has stated that its dividend policy is to increase its dividend annually, as long as its free cash flow remains stable. This is a positive sign for BMY shareholders, as it shows that the company is committed to returning value to its shareholders through dividend payments.
2020 Dividend Cut
In 2020, BMY cut its dividend by 43%. This was a drastic move and it was done in response to the unprecedented economic circumstances caused by the coronavirus pandemic. The cut took the dividend yield down to 1.4%, which is still above the industry average of 1.2%. This shows that BMY is still committed to returning value to shareholders, even in difficult times.
The 2021 Dividend Increase
In 2021, BMY raised its dividend by 8%. This was the first dividend increase since 2019, and it brought the dividend yield back to 2.6%. BMY also announced that it plans to continue increasing its dividend annually, as long as its free cash flow remains stable. This is a positive sign for BMY shareholders, as it shows that the company is committed to returning value to its shareholders through dividend payments.
The Outlook for 2022
At this point, it is difficult to predict what BMY's dividend policy will look like in 2022. The company has stated that it plans to continue increasing its dividend annually, as long as its free cash flow remains stable. However, the pandemic has had a significant impact on the global economy, and it is unclear how this will affect BMY's financial performance in the coming year.
Conclusion
Bristol-Myers Squibb has a long and storied history of dividend payments. The company has been a reliable dividend payer since 1938, and it has consistently increased its dividend annually, as long as its free cash flow remains stable. In 2020, BMY cut its dividend in response to the coronavirus pandemic, but it has since resumed its dividend increases. Going forward, BMY plans to continue increasing its dividend annually, as long as its free cash flow remains stable.