Why Investors View Bristol‑Myers Squibb (BMY) as a Safe Dividend Stock for Income
A pharmacy shelves stocked with pharmaceutical drugs awaiting distribution.
Bristol-Myers Squibb Company (NYSE:BMY) presents a strong case for investors looking for both value and reliable income. While the company has faced challenges in the past, it has recently gained approval for several important new drugs, strengthening its outlook.
For dividend-focused investors, free cash flow is often a more meaningful indicator than earnings, as it excludes non-cash items that can distort the picture. In the previous year, Bristol-Myers Squibb Company (NYSE:BMY) generated $13.9 billion in free cash flow, well above the $4.9 billion it distributed in dividends. This substantial cushion suggests the company is well-positioned to maintain its dividend even in tougher times and gives it flexibility to reduce long-term debt if needed.
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best dividend stocks, as the company has raised its payouts for 16 consecutive years. The company offers a quarterly dividend of $0.62 per share for a dividend yield of 5.12%, as of July 27.
While we acknowledge the potential of BMY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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