Is NYSE:BMY suited for dividend investing?

Our stock screener has singled out BRISTOL-MYERS SQUIBB CO (NYSE:BMY) as a promising choice for dividend investors. NYSE:BMY not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Understanding NYSE:BMY's Dividend Score

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:BMY has achieved a 7 out of 10:

• BMY has a Yearly Dividend Yield of 4.47%, which is a nice return.
• BMY's Dividend Yield is rather good when compared to the industry average which is at 4.43. BMY pays more dividend than 96.12% of the companies in the same industry.
• BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.79.
• On average, the dividend of BMY grows each year by 6.94%, which is quite nice.
• BMY has been paying a dividend for at least 10 years, so it has a reliable track record.

Evaluating Health: NYSE:BMY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:BMY, the assigned 5 reflects its health status:

• With a decent Altman-Z score value of 2.40, BMY is doing good in the industry, outperforming 70.87% of the companies in the same industry.
• The Debt to FCF ratio of BMY is 3.22, which is a good value as it means it would take BMY, 3.22 years of fcf income to pay off all of its debts.
• BMY has a Debt to FCF ratio of 3.22. This is amongst the best in the industry. BMY outperforms 90.29% of its industry peers.

A Closer Look at Profitability for NYSE:BMY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BMY was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 9.08%, BMY belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
• BMY has a better Return On Equity (28.57%) than 93.20% of its industry peers.
• The Return On Invested Capital of BMY (13.32%) is better than 90.78% of its industry peers.
• The last Return On Invested Capital (13.32%) for BMY is above the 3 year average (9.56%), which is a sign of increasing profitability.
• BMY has a Profit Margin of 18.44%. This is amongst the best in the industry. BMY outperforms 91.75% of its industry peers.
• BMY's Profit Margin has improved in the last couple of years.
• BMY's Operating Margin of 24.00% is amongst the best of the industry. BMY outperforms 91.75% of its industry peers.
• BMY has a Gross Margin of 76.70%. This is amongst the best in the industry. BMY outperforms 82.52% of its industry peers.
• BMY's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of BMY contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.