Back to top

Analyst Blog

Zacks Equity Research

Becton, Dickinson (BDX) Announces 10.6% Dividend Increase

IDXX CRY BDX CGNT

Trades from $3

In an effort to share more profits with investors, the board of directors of the leading global medical technology company Becton, Dickinson and Company (BDX - Free Report) recently increased its dividend by 10.6% from the previous quarter. The company will now pay a quarterly dividend of 73 cents per share on Dec 30.  

Shareholders on record as of Dec 9, will have the meatier dividend in their pockets on Dec 30, 2016. With the increase, the annualized rate comes to $2.92 per share. Based on the closing share price of $167.67 as of Nov 22, the increased payout implies a dividend yield of 1.7%. The company has a solid track of increasing its dividend at regular intervals. The recent dividend hike marks the 45th consecutive fiscal dividend increase by the company.

Based in Franklin Lakes, NJ, Becton, Dickinson, popularly known as BD, is a medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents.

An innovative product pipeline is the key growth driver at BD. A huge number of regulatory approvals both in the U.S. and international markets are facilitating expansion of the company’s product portfolio. The company also has a partnership with Central Admixture Pharmacy Services (CAPS) under which BD Intelliport Medication Management System customers will be allowed to buy a portfolio of the frequently used CAPS pre-filled anesthesia syringes. We believe that such partnerships and collaborations will lend BD a competitive edge and eventually boost its overall results.

For fiscal 2017, the company expects revenues to increase approximately 4.5% to 5.0% on a comparable and currency-neutral basis. Adjusted earnings (on a currency-neutral basis) are expected in the range of $9.62 to $9.72, reflecting year-over-year growth of 12.0% to 13.0%. However, after including the estimated unfavorable impact from foreign currency, the company expects adjusted diluted earnings per share between $9.45 and $9.55, which represents growth of approximately 10.0% to 11.0%

Zacks Rank & Key Picks

Currently, BD carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical sector are Cogentix Medical, Inc. (CGNT - Free Report) , CryoLife Inc. (CRY - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, IDEXX Laboratories and Cogentix sport a Zacks Rank #1 (Strong Buy) while CryoLife has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cogentix Medical registered a positive earnings surprise of 100% in the last reported quarter. Notably, the company has a solid one-year return of roughly 53.5%.

CryoLife has a stellar one-year return of roughly 80.9%. In the last reported quarter, the company registered an impressive earnings surprise of 225%.

IDEXX Laboratories represents a solid one-year return of almost 73.7%. The company has a long-term expected growth rate of almost 14.96%.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>