Becton, Dickinson And Company: Expect More Cash To Head To Shareholders
Becton, Dickinson and Company (BDX) is a leader in the healthcare and medtech space. BDX is number one across a broad range of healthcare subcategories.
The substantial acquisitions over the last few years levered up BDX's balance sheet which has hampered dividend growth over that time. However, the de-levering process is nearing completion which frees up cash flow for more productive uses such as further R&D and innovation as well as faster dividend growth and a return of share repurchases.
The dividend growth strategy is the one that most appealed to me when I began my investment journey. The idea behind the strategy is to (1) find quality businesses that (2) pay and grow their dividend payments over time.
Image by author; data source Becton, Dickinson & Company Investor Relations
According to the CCC list, BDX is a Dividend Champion with 49 consecutive years of dividend growth. That's an impressive streak that dates back to 1973 and has lasted throughout all sorts of business, economic and geopolitical calamities.