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How BDX Returns Value to Its Shareholders

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Aug. 1 2017, Updated 6:38 a.m. ET

BD’s capital allocation strategy

Becton Dickinson (BDX), or BD, notes that its focus is on returning capital to its shareholders through dividend payments and share buybacks. During 1H17, the company bought back $220 million in shares.

Despite undertaking huge acquisitions in the recent past, the company has paid out consistently increasing dividends to its shareholders. BD is one of the 51 dividend aristocrats, which refers to the companies that have been paying consistently increasing dividends to their shareholders for at least 25 years.

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Now, BD is set to acquire C.R. Bard (BCR), which is also a dividend aristocrat. Both BD and C.R. Bard have paid increasing dividends to their stockholders consecutively for 45 years. Medtronic (MDT) and Abbott Laboratories (ABT) are two of the other major medical device companies in the United States that are also S&P 500 dividend aristocrats.

If you’re interested in getting diversified exposure to Becton Dickinson (BDX), you can invest in the SPDR S&P Dividend ETF (SDY). SDY holds ~0.56% of its portfolio in BDX.

Quarterly cash dividend

BD announced a quarterly cash dividend of $0.73 per share on July 25, 2017. This dividend is payable on September 29, 2017, to shareholders of record on September 8, 2017.

BD’s five-year dividend growth rate is 10.04%. The annualized dividend yield for the stock stands at 1.45%. For fiscal 2017, BD’s indicated annual dividend payout stands at $2.92 per share.

Investors can gain exposure to BD by investing in the SPDR S&P Dividend ETF (SDY), which invests 0.69% of its portfolio in BDX stock. SDY tracks the S&P High Yield Dividend Aristocrats Index.

Continue to the final article in this series to take a look at BDX stock’s recent performance.

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