Becton Dickinson & Co's Dividend Analysis
Insights into Becton Dickinson & Co's Dividend Sustainability and Growth
Becton Dickinson & Co (NYSE:BDX) recently announced a dividend of $0.95 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-07. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Becton Dickinson & Co's dividend performance and assess its sustainability.
What Does Becton Dickinson & Co Do?
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Becton Dickinson is the world's largest manufacturer and distributor of medical surgical products, such as needles, syringes, and sharps-disposal units. The company also manufactures pre-filled devices, diagnostic instruments and reagents, as well as flow cytometry and cell-imaging systems. BD Medical is nearly half of the total business, while BD Life Sciences (27% of 2023 revenue) and BD Interventional (24%) account for the remainder. International revenue accounts for 43% of the company's business.
A Glimpse at Becton Dickinson & Co's Dividend History
Becton Dickinson & Co has maintained a consistent dividend payment record since 1972. Dividends are currently distributed on a quarterly basis.
Becton Dickinson & Co has increased its dividend each year since 1972, earning it the title of a dividend kinga prestigious designation for companies with at least 52 consecutive years of dividend increases. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Becton Dickinson & Co's Dividend Yield and Growth
As of today, Becton Dickinson & Co currently has a 12-month trailing dividend yield of 1.54% and a 12-month forward dividend yield of 1.59%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Becton Dickinson & Co's annual dividend growth rate was 4.80%. Extended to a five-year horizon, this rate decreased to 4.00% per year. And over the past decade, Becton Dickinson & Co's annual dividends per share growth rate stands at 5.90%. Based on Becton Dickinson & Co's dividend yield and five-year growth rate, the 5-year yield on cost of Becton Dickinson & Co stock as of today is approximately 1.87%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Becton Dickinson & Co's dividend payout ratio is 0.40.