Bristol Myers Squibb Is A Good Dividend Stock: Should You Buy?

Bristol-Myers Squibb Company (BMY - Get Rating) is one of the most innovative pharmaceutical companies in the United States, with a diversified drug pipeline for treating cancer, immunodeficiency diseases and cardiovascular ailments. It is a highly profitable biopharmaceutical company with a trailing-12-month gross profit margin of 80.07%.

Despite being a renowned and highly profitable company, BMY’s shares generated only modest gains over the past year as investors flocked to biopharma companies with COVID-19 therapy pipelines. So, we think this overshadowed stock is a potential hidden gem given its sound financials and high dividend payouts and its relative undervaluation.

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BMY – Bristol-Myers Squibb (BMY) has been overshadowed over the past year despite its concentrated rare disease and cancer drug pipeline. However, the company has maintained its periodic dividend payouts. But with Treasury yields on the ascent since last month, will BMY be able to retain its popularity among income investors? Read more to find out.

While rising Treasury yields might lead to a reduced demand for stocks by income investors, BMY’s  sturdy drug pipeline and impressive developments should appeal to many investors. Furthermore, Moreover, the stock’s relative undervaluation should pique the interest of value investors.

BMY has been making significant progress in cancer drug discovery. The company is on track to introduce Europe’s first adjuvant immunotherapy for patients diagnosed with muscle invasive urothelial carcinoma. Its Opdivo drug has been validated by the European Medicines Agency and is currently pending approval.

On March 27, the U.S. FDA approved BMY’s first-in-class BCMA-directed personalized immune cell therapy drug Abecma. The FDA is also currently reviewing BMY’s cardiomyopathy drug mavacamten and is expected to announce the verdict regarding its  nationwide usage by next January.

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Roger Keats 2 weeks ago Member's comment

so we buy and hold