|
|
Bristol-Myers Pays Healthy Dividends
Posted: Feb 12, 2009 14:04 PM by Glenn Curtis
Dividends are never guaranteed. A company could decide to cut or suspend them altogether if its financial picture were to darken.
That being said, other aspects to the dividend equation should be considered. For example, companies that do pay a dividend are often considered, true or not, to be healthier than those that don't. In addition, dividends can help supplement an investor's income and perhaps provide some solace during periods of declining stock prices. (To learn more about this important distribution, be sure to read The Importance Of Dividends.)
IN PICTURES: How To Make Your First $1 Million
With that in mind, below is a list of companies that, according to the Investopedia.com stock screener, enjoy a forward dividend yield of 5% or more. These companies may warrant a closer look.
|
Company
|
Market Capitalization
|
Forward Annual Dividend Yield
|
|
Barnes & Noble
(NYSE:BKS)
|
$919 million
|
6.0%
|
|
Briggs & Stratton
(NYSE:BGG)
|
$743 million
|
5.9%
|
|
Bristol-Myers Squibb
(NYSE:BMY)
|
$45.1 billion
|
5.4%
|
|
Caterpillar
(NYSE:CAT)
|
$19.1 billion
|
5.3%
|
|
Sothebys
(NYSE:BID)
|
$569 million
|
7.1%
|
|
Data as of market close February 6, 2009 from the Investopedia Stock Screener.
|
Bristol-Myers Looking Healthy
I believe, and have for some time, that the pharmaceutical industry potentially will fare very well over the long haul. My logic is simple: America and the world are becoming more populated, and the number of health issues likely to arise in the future will also increase.
New York-based Bristol-Myers Squibb has some things going for it that deserve a mention. For one, it has several big-name products under its umbrella such as Plavix, which helps keep platelets in the blood from sticking together. If you're a parent, you might recognize the product Enfamil – which is baby formula. I have plenty of late-night experience with that.
Solid Fourth Quarter
Bristol is coming off a solid fourth quarter, which it announced in late January. In the period ended December 31, it earned 46 cents a share excluding items, which was a nickel better than analyst expectations. Although its sales line was apparently a bit light (sales came in at about $5.25 billion, whereas analysts were looking for just over $5.4 billion), Plavix experienced a healthy 7% jump in worldwide revenue.
But the really big news was Bristol's outlook for 2009. It offered up guidance of $1.85 to $2 a share excluding items. That's essentially in line with the $1.94 a share estimate I'm seeing now, and it was in the ballpark of the $1.96 a share estimate at the time. In this environment, not disappointing analysts is a plus. (Explore the controversies surrounding companies commenting on their forward-looking expectations in Can Earnings Guidance Accurately Predict The Future?)
As For The Dividend...
In December Bristol's board declared a 31-cent dividend. And in a release it said, "The Board of Directors also indicated an expected dividend for the full year of 2009 of $1.24 per share on the 10-cent par value common stock of the corporation, subject to the normal quarterly review by the Board." In short, this means its forward yield (based on the expected dividend) is in excess of 5%. That's competitive with some of the other big-name drug companies including Merck (NYSE:MRK) (4.9%), Pfizer (NYSE:PFE) (4.4%) and Schering Plough (NYSE:SGP) (1.3%).
Bottom Line
Although not guaranteed, companies that pay dividends can provide some solace to anxious investors during down times. In addition, they can help supplement an investor's income.
Read The Power Of Dividend Growth to find out more about dividends and how they can become an important part of your overall portfolio return.
By Glenn Curtis
Glenn Curtis started his career in the 1990s as an equity analyst for a regional firm in New Jersey. There, he covered companies in the technology, entertainment, and gaming industries. Curtis has since worked as a financial writer at a series of both web and print publications, including TheStreet.com and Registered Rep Magazine. He has held his series 6,7,24, and 63 securities licenses.
Rate this Article:
Your Rating:
Overall Rating:
Vote Now!
MORE STOCK ANALYSIS
 Loading...
THE BEST OF INVESTOPEDIA
Loading...
|
CURRENT HIGH YIELD SAVINGS RATES
Rate data provided by
|
