Is This Top Dividend in Trouble?

Bristol-Myers Squibb  (NYSE: BMY  )  has had anything but a good ride in the wake of the patent cliff. The patent expiration of the company's former top-selling drug, Plavix, has obliterated the drug's sales in 2013 and taken a hammer to Bristol's top and bottom lines. Other top-selling drugs haven't been able to cover up Plavix's holes, but Bristol's stock hasn't suffered so far: Shares in this big pharma leader are up more than 28% year-to-date.

However, Bristol's falling income is making its 3.3% dividend look vulnerable. The company has raised its dividend every year since 2010, but will that continue now that Bristol's staring down the barrel of patent losses and falling revenue?

In the video below, Fool contributor Dan Carroll tells you what you need to know about Bristol's dividend and whether income investors should place their faith in this pharmaceutical giant that's adapting to life with the patent cliff.

Big pharma stocks like Bristol can offer some great dividends, but smart investors know the importance of diversifying -- seeking high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by clicking here.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2617017, ~/Articles/ArticleHandler.aspx, 9/30/2014 4:42:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement