Bristol Myers Squibb (NYSE: BMY) is a $100 billion market cap pharmaceutical company that has raised its dividend every year since 2010 and has paid one since 1933. The stock currently yields 4.5%. But can it continue to pay its $0.57 per share quarterly dividend despite an expected decline in its free cash flow next year? Bristol Myers Squibb has 35 approved drugs, including well-known names like blood thinner Eliquis and cancer fighters Opdivo and Revlimid. This year, revenue and earnings are forecast to dip, though free cash flow is projected to grow considerably from 2022's total. However, next year, while earnings are expected to recover, free cash flow will drop, according to Wall Street analysts. In the Safety Net model, there is no sin bigger than falling cash flow. |
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