Becton Dickinson (NYSE:BDX) Is Increasing Its Dividend To $1.05

The board of Becton, Dickinson and Company (NYSE:BDX) has announced that the dividend on 31st of December will be increased to $1.05, which will be 1.0% higher than last year's payment of $1.04 which covered the same period. This will take the dividend yield to an attractive 2.3%, providing a nice boost to shareholder returns.

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Becton Dickinson's Projected Earnings Seem Likely To Cover Future Distributions

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. The last payment made up 71% of earnings, but cash flows were much higher. This leaves plenty of cash for reinvestment into the business.

Looking forward, earnings per share is forecast to rise by 65.6% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 45% by next year, which is in a pretty sustainable range.NYSE:BDX Historic Dividend November 9th 2025

Check out our latest analysis for Becton Dickinson

Becton Dickinson Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from $2.40 total annually to $4.16. This works out to be a compound annual growth rate (CAGR) of approximately 5.7% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Becton Dickinson has impressed us by growing EPS at 46% per year over the past five years. However, Becton Dickinson isn't reinvesting a lot back into the business, so we wonder how quickly it will be able to grow in the future.

Becton Dickinson Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Case in point: We've spotted 2 warning signs for Becton Dickinson (of which 1 shouldn't be ignored!) you should know about. Is Becton Dickinson not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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