Portfolio Update
The FiveTwenty portfolio received $235.57 dividends in the past week. ADM, EMR, JNJ, and SON paid their quarterly dividend during the week.
| Past Week Dividend | $235.41 |
| Current Quarter Dividend (Q2 2023) | $1,498.34 |
| LifeTime Dividend | $11,671.92 |
| Estimated Annual Dividend | $9,527.23 |
The capital allocation for the week of 06/11/2023 to 06/17/2023 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 12 of 2023, the company reported Q1 2023 earnings on 04/27/2023. In addition, the share price decreased from $66.53 to $64.80 during that period.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 16 years | 16 years | |
| Yield | 3.43% | 3.29% | 2.85% |
| Payout Ratio | 28.50%1 | 28.44%2 | |
| P/E | 8.321 | 8.642 |
1 computed using TTM adjusted EPS of $7.79 as of Q1 2023
2 computed using TTM adjusted EPS of $7.70 as of Q4 2022
Q1 2023 earnings report
Did BMY’s latest earnings report raise any warning flags?
Trends from previous quarters continued in Q1 2023. Revenue growth from in-line products (Eliquis 7%, Opdivo 15%) and new product portfolio were offset by declines in LOE products (Revlimid -37%). Like in previous quarters, adjusted net earnings and adjusted EPS grew faster than revenues. Overall, revenue declined (3)%, adjusted net income increased 1.8%, and adjusted EPS were 5% higher than in Q1 2022.
| Revenue (in millions) | Adj Net Income (in millions) | Adj EPS . | |
| Q1 2022 | $11,648 | $4,246 | $1.96 |
| Q1 2023 | $11,337 | $4,324 | $2.05 |
| % Change | (3)% | 1.8% | 5% |
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 – $8.25. The guidance remains unchanged from prior guidance issues during FY 2022 earnings report in February 2023.
Thesis
Why are we adding to our position in BMY?
The company’s fundamentals remain solid, and we continue to have a high level of confidence in BMY’s ability to continue to grow its earnings and dividends. Furthermore, the recent decline in the share price has create an opportunity to add to our position at a similar valuation compared to our recent investments.
Previous Articles
- 2023 Week 12: Bristol-Myers Squibb (NYSE: BMY)
- 2021 Week 42: Bristol-Myers Squibb (NYSE: BMY)
- 2021 Week 35: Bristol-Myers Squibb (NYSE: BMY)
- 2021 Week 29: Bristol-Myers Squibb (NYSE: BMY)
Photo by Alexander Grey on Unsplash