BD announces dividend and additional share repurchase authorization

Published 28/01/2025, 22:24
BD announces dividend and additional share repurchase authorization

FRANKLIN LAKES, N.J. - BD (Becton, Dickinson and Company) (NYSE: BDX), a global medical technology firm with a market capitalization of $72.47 billion, declared a quarterly dividend and the authorization of additional share repurchases today. The company’s Board of Directors announced a quarterly dividend of $1.04 per common share, with an indicated annual rate of $4.16 per share, representing a 1.67% yield. The dividend is payable on March 31, 2025, to shareholders on record as of March 10, 2025. According to InvestingPro, BD has maintained and raised its dividend for 54 consecutive years, demonstrating remarkable consistency in shareholder returns.

Additionally, BD has repurchased $750 million of its stock in fiscal 2025. The Board has also authorized the repurchase of up to 10 million shares of common stock, supplementing the remaining shares under the previous authorization from 2021. These repurchases can occur through open market transactions, private negotiations, or other methods as decided by management based on various factors, including stock price, market conditions, and other business considerations. The stock is currently trading near its 52-week high, with InvestingPro data indicating an overbought condition based on technical indicators.

BD is recognized as one of the largest medical technology companies worldwide, focusing on advancing health by enhancing medical discovery, diagnostics, and care delivery. The company supports healthcare professionals by providing innovative technologies and solutions aimed at improving clinical therapy for patients and processes for providers. With an EBITDA of $5.16 billion and a solid financial health score rated as "GOOD" by InvestingPro, BD demonstrates strong operational performance. Employing over 70,000 people, BD operates in nearly every country and collaborates globally to tackle significant health challenges.

The information reported is based on a press release statement from BD. The company’s actions reflect its ongoing commitment to shareholder returns and its confidence in the long-term value of its stock. Share repurchases are a common method for companies to return capital to shareholders and potentially increase earnings per share by reducing the number of shares outstanding. The timing and volume of the repurchases will be subject to market conditions and other factors.

In other recent news, Becton Dickinson (NYSE:BDX) has been the focus of a few key developments. The company’s fourth quarter and full-year fiscal 2024 earnings call revealed a 7.4% growth in Q4 revenue and a 5% full-year organic revenue increase. Adjusted diluted earnings per share also rose by 11.4%, reaching $13.14 for the year. Despite challenges in the Chinese market and the Bioscience-Pharma sector, the company’s MedTech and Diagnostics segments grew by 5.9%, with BD Medical (TASE:PMCN)’s biologic drug delivery sales surpassing $1 billion.

Additionally, Piper Sandler analysts increased the price target for Becton Dickinson shares to $280 from $275, maintaining an Overweight rating. This follows a period of underperformance for the company’s stock. The analysts also expressed support for a potential spin-off of the Life Sciences division, suggesting it could provide multiple benefits to shareholders.

For fiscal year 2025, Becton Dickinson anticipates revenue between $21.9 billion and $22.1 billion, with adjusted diluted EPS guidance of $14.25 to $14.60. The company also announced a $1 billion share repurchase plan and increased its dividend by 9.5%. These are among the recent developments concerning Becton Dickinson.

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