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Becton Dickinson

$BDX (+0,29%)

Becton Dickinson is currently attractive primarily to defensive value and dividend investors who are looking for a crisis-proof “dividend king” with a solid yield and upside potential following several years of undervaluation. Pure growth investors, on the other hand, will find little momentum, as revenue growth is anchored in the mid-single-digit percentage range. For long-term investors, the price level around $180 offers an attractive risk-reward ratio for a defensive core investment.


Breakout/Recovery: The recent momentum is driven by improved quarterly results, an upward revision to the full-year 2026 earnings forecast, progress in debt reduction, and positive study results in the core vascular segment (AGILITY study).


Dividend

Dividend Payer & Status: Yes. Becton Dickinson belongs to the elite group of “Dividend Kings” and has increased its dividend for 54 consecutive years.

Current dividend yield: approx. 2.33% (current quarterly dividend of $1.05 per share, or $4.20 annualized).

Dividend growth (last 5 years): Dividend growth over the past five years averaged a solid 5.0% to 5.2% per year (CAGR). This represents steady, defensive growth that keeps pace with inflation.

Security & Payout Ratio:

Adjusted Payout Ratio: Based on adjusted earnings (non-GAAP EPS), the ratio is a moderate approximately 32% to 33%.

Free Cash Flow Coverage: Based on free cash flow, the payout ratio is less than 30%.

Thanks to its crisis-resistant business model with recurring revenue from medical consumables (syringes, infusion systems, diagnostics), the dividend is considered exceptionally secure.


Historical Comparison: On a 5- to 10-year average, Becton Dickinson has typically traded at a forward P/E ratio between 18 and 22. On an adjusted basis, the stock is therefore currently historically undervalued.


Future success will depend on how seamlessly the APM hemodynamic sensors are integrated into the Alaris and Incada platforms and to what extent the BD Excellence efficiency program can protect operating margins against ongoing increases in labor and material costs. If this symbiosis of software and devices is successfully and consistently implemented, New BD will remain one of the most resilient and profitable players in the global medical technology market.

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8 Commenti

immagine del profilo
Since I haven’t received a response to this day regarding my alleged characterization of one of your purchases as a bad investment, I’ll go ahead and share my personal opinion on the matter anyway:

Fundamentally, there are several things I like about BDX:

- Defensive healthcare business
- Recurring demand
- strong cash flow generation
- solid dividend history
- currently showing decent operational improvement

What would make me a bit hesitant to buy the stock:

- revenue growth is more in the mid-single-digit range
- the stock is not a growth stock (as you wrote, it’s defensive)
- Debt levels and the transformation following the life sciences spin-off need to be monitored further
- Additionally, a very large U.S. investment program is currently underway; BD has committed to approximately $19 billion in investments in the U.S., of which about $3 billion is for production expansion.

That’s strategically interesting, but capital-intensive.

My verdict, therefore:
As a classic quality dividend stock: yes, it’s a good choice.
As an income stock with a high current yield: no.

P.S.: It wouldn’t be a bad investment 😉
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immagine del profilo
1Settimana
@Raketentoni Your comment on this post:
https://getqu.in/bEKb98/
I didn't have FoMo, and the lira kept rising a bit in 2026...
All good 👍🏻 Toni
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immagine del profilo
@Smudeo See, at least now I know what this is all about :) Yeah, from back then, that investment wasn't easy, but the chances of it working out are always 50/50 😉
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immagine del profilo
1Settimana
@Raketentoni Sorry—because of the duplicate posts and the notifications, I didn't see your comment.
I've achieved my goal.
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immagine del profilo
Thanks for the introduction. 👍 The company stands to benefit significantly from the rise of AI in the healthcare sector. Laboratory technology—a segment of the medical technology industry—will be one of the growth markets of the future!
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immagine del profilo
1Settimana
By the way, since 2001, the stock has outperformed both the S&P and the ETFs.
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immagine del profilo
@Smudeo You could also go with $INVE B —that stock beats almost everything in the long run :)
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immagine del profilo
1Settimana
@Raketentoni I'll take a look at it, thanks 🤝
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