Daily Report: Bristol - Myers Squibb (BMY)

black and gray stethoscope

Photo by Hush Naidoo Jade Photography on Unsplash

Bristol-Myers Squibb Co, known by the ticker symbol (BMY),  is a large-cap general drug manufacturer, operating in the healthcare business sector. This is my first report on BMY for this Viital dog of the week stock portfolio. I have reported on it for past portfolios.

Bristol-Myers Squibb discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, oncology, and immune disorders. 

A key focus for Bristol is immuno-oncology, where the firm is a leader in drug development. 

Unlike some of its more diversified peers, Bristol has exited several nonpharmaceutical businesses to focus on branded specialty drugs, which tend to support strong pricing power.

The company sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. 

The company was formerly known as Bristol-Myers Company. 

The company was founded in 1887 and is headquartered in New York, New York.

Three key data points gauge any dividend equity or fund such as Bristol-Myers Squibb Co (BMY):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

BMY Price

Bristol's price per share was $66.50 as of yesterday's market close. One year ago its price was $59.99. Therefore BMY's share price rose $6.51 or 10.85% in the past year.

If BMY's stock trades in the range of $54.00 to $74.00 this next year, its recent $66.50 share price might rise by $5.50 to reach $72.00  by February 11, 2023. This estimate is $0.48 under the median of one year target single share prices from 20 analysts tracking the stock for their brokerage houses.

BMY Dividends

Bristol's most recent quarterly dividend of $0.54 was paid to shareholders February 1st, to those on record as of January 6th.  The BMY  Annual estimated dividend payout per share of $2.16 yields 3.25% per yesterday's $66.50. closing price. 

BMY has paid annual dividend payouts increasing annually since February, 1986. That stretch marks 36 years this month.

BMY Returns

Adding the $2.16 annual BMY forward-looking dividend to its estimated one-year price upside of $5.50 shows a $7.66 potential gross gain, per share, to be reduced by any costs to trade BMY shares.  

At yesterday's $66.50 price per share, a little under $1000 would buy 15 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.67 per share.

Subtract that maybe $0.67 brokerage cost from my estimated $7.66 gross gain estimate per share results in a net gain of $6.99 X 15 shares = $104.85 for a 10.49% net gain on a $997.50 investment.

So it is that Bristol-Myers Squibb Co (BMY) shows a possible 10.49% net gain including a 3.25% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Bristol-Myers Squibb Co (BMY) could generate $32.50 in cash dividends alone. Note that a single share of BMY stock bought at yesterday's share price of $66.50 is over 2x more than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is not the time to pickup Bristol-Myers Squibb Co, (BMY) shares. The estimated next-year dividend from $1K invested is $34.50 less than FMS's single share price. Consider yourself alerted. Its a sign!  Wait for BMY shares to pull back to $46.50.

All of the estimates above are speculation based on the past history of Bristol-Myers Squibb Co, (BMY). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments