Portfolio Update
The FiveTwenty portfolio received $325.35 dividends in the past week. K, MMM, ORI, and PII paid their quarterly dividend during the week.
| Past Week Dividend | $325.35 |
| Current Quarter Dividend (Q1 2023) | $1,813.43 |
| LifeTime Dividend | $9,921.87 |
| Estimated Annual Dividend | $8,500.59 |
The capital allocation for the week of 03/19/2023 to 03/25/2023 will be used to add to our position in Bristol-Myers Squibb (NYSE: BMY).
BMY – Position Update
Since our last check-in on BMY in week 42 of 2021, the company reported FY 2021 earnings on and FY 2022 earnings on 02/02/2023. In addition the share price increased 14% from $58.36 to $66.53 during that period.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 16 years | 14 years | |
| Yield | 3.29% | 3.36% | 2.86% |
| Payout Ratio | 28.44%1 | 28.4%2 | |
| P/E | 8.641 | 8.632 |
1 computed using TTM adjusted EPS of $7.70 as of Q4 2022
2 computed using TTM adjusted EPS of $6.76 as of Q1 2021
FY 2022 earnings report
Did BMY’s latest earnings report raise any warning flags?
For FY 2022 BMY posted top line revenues in line with 2021. Growth in the in-line products and new product portfolio was offset by decreases in the LOE (loss of exclusivity) products. However, when adjusting for foreign exchange impacts revenue grew 3%. At the same time adjusted net income and adjusted EPS grew ahead of revenues. Adjusted EPS especially benefited from the company’s share buyback program. Overall, revenue decreased 0.5%, adjusted net income grew 2.5%, and adjusted EPS were 7.5% higher.
| Revenue (in millions) | Adj Net Income (in millions) | Adj EPS . | |
| 2021 | $46,385 | $16.1 | $7.16 |
| 2022 | $46,159 | $16.5 | $7.70 |
| % Change | (0.5)% | 2.5% | 7.5% |
Additional noteworthy developments during the quarter:
- On 03/03/2023, BMY declared a dividend of $0.57 per share payable on 05/01/2023 to shareholders of record as of 04/10/2023.
Looking ahead, BMY expects revenue increase of about 2% for FY 2023. In addition, non-GAAP (adjusted) EPS are expected in the range of $7.95 – $8.85.
Thesis
Why are we adding to our position in BMY?
BMY followed a strong FY 2021 with a solid FY 2022. The company has continued effectively employ a strategy of acquisition and new product launches to expand its product portfolio. BMY has succeeded in increasing adjusted EPS at a healthy rate and has continued to increase its dividend payout accordingly.
Furthermore, the dip in share price in the last week has created an opportunity to add to our position at a very similar valuation to our last investment.
Previous Articles
- 2021 Week 42: Bristol-Myers Squibb (NYSE: BMY)
- 2021 Week 35: Bristol-Myers Squibb (NYSE: BMY)
- 2021 Week 29: Bristol-Myers Squibb (NYSE: BMY)
Additional Research
Photo by Louis Reed on Unsplash
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