Bristol-Myers Squibb Is Prepared To Heal Itself

This week I'm seeking a prestigious and long-term dividend-paying stock from the healthcare business sector. 

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing a large-cap drug manufacturer - major, named Bristol-Myers Squibb Company. Its trading ticker symbol is BMY

Bristol-Myers Squibb Co is engaged in discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceuticals products. The company operates in one segment that is Biopharmaceuticals.

The company offers drugs in various therapeutic classes, such as oncology; cardiovascular; immunoscience; and virology, including human immunodeficiency virus (HIV) infection.

It sells products to wholesalers, retail pharmacies, hospitals, government entities and the medical profession. Bristol-Myers Squibb Company has collaboration agreements with Nektar Therapeutics; Illumina, Inc.; Janssen Pharmaceuticals, Inc.; Advantagene, Inc.; and Compugen Ltd.; and Tsinghua University, as well as a research partnership with Sirenas. 

The company was formerly known as Bristol-Myers Company and changed its name to Bristol-Myers Squibb Company in 1989. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in New York, New York.

I use three key data points to gauge the value of any dividend equity or fund like  Bristol-Myers Squibb Company (BMY): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

BMY Price

BMY's price per share was $56.02 at yesterday's market close. A year ago its price was $63.70 for a price loss of $7.68  per share for the year.  

Assuming Bristol-Myers's price will trade in the range of $50 to $70 next year, BMY's recent $56.02 price could improve to $64.02 by mid-October, 2019. 

BMY Dividends

BMY's most recent quarterly dividend was $0.40 declared September 12th and payable November 1st. 

At this most recent $0.40 quarterly rate, National's annual dividend equals $1.60 yielding 2.72% at yesterday's closing $56.02 price.

Gains For BMY?

Adding the $1.60 estimated annual dividend to my estimated $8.00 annual price upside for Bristol-Myers Squibb Company (BMY) makes a $9.60  potential gross annual per share gain, which will be reduced by any costs to trade the shares.  

 A little under $1,000.00 invested today at the $56.02 recent price buys 18 Bristol-Myers Squibb Company (BMY) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.56 per share, subtracting that $0.56 brokerage cost from the estimated $9.60 gross annual gain leaves a net gain of $9.04 X 18 shares = $162.72 or a 16% net gain on a $1,008.36 investment.

Therefore, Bristol-Myers Squibb Company, whose trading ticker symbol is BMY, now shows a possible 16% net gain including a 2.72% dividend yield. 

Nineteen brokers cover this stock:

Four say "buy" BMS.

Two say BMS will "outperform" its peers.

Twelve say "hold" BMS.

One says BMS will "underperform" its peers.

Thus, the general recommendation number available is 2.53 or 'hold'.

These nineteen wizards of wall street reckon a price target $2.00 lower than my disagree with my estimated $64.02  price target.

So, you could look at these few speculative numbers this way, Bristol-Myers Squibb Company, whose trading ticker symbol is BMY,  has made money, is making money, and could net a 10% to 16% net annual gain including a 2.72% dividend yield. It could be more, it could be less.  

The above speculation is based on past year performance. The actual results remain to be seen to determine if Bristol-Myers Squibb Company (BMY) is worth your time and money.

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 solicitation, ...

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