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Alberto Abaterusso
Alberto Abaterusso
Articles (1701) 

2 Large-Cap Companies Declare Dividends

Bristol-Myers Squibb, Colgate-Palmolive have appealing yields

September 12, 2019 | About:

Two large-cap companies, who are long-term payers, declared quarterly dividends on Wednesday.

The companies also outperform both the S&P 500 index and more than half of their peers in terms of dividend yield.

Shares of Bristol-Myers Squibb Co. (NYSE:BMY) rose 0.18% to $49.33 in extended trading on Wednesday after the drugmaker announced the quarterly dividend. On Nov. 1, it will pay 41 cents per common share to shareholders of record as of Oct. 4. The ex-dividend date is Oct. 3. The payment is in line with the previous distribution.

As of Sept. 11, the payment generates a forward dividend yield of 3.38% compared to the industry median of 1.56% and the S&P 500’s yield of 1.87%.

Bristol-Myers Squibb beats 349 out of a total of 441 companies operating in the drug manufacturers - major industry in terms of a higher forward dividend yield.

The company has regularly paid quarterly dividends since Feb. 1, 1986.

The trailing 12-month dividend per share averaged a 0.6% annual increase over the past five years.

Year to date, the stock has declined 5.3% to close at $49.24 on Wednesday, underperforming the S&P 500 by 25%. The 52-week range is $42.48 to $63.69. The market capitalization is $80.55 billion, the price-book ratio is 4.98 and the price-sales ratio is 3.38.

According to the Peter Lynch chart, the stock is not expensive.

Shares of Colgate-Palmolive Co. (NYSE:CL) were unchanged at $72.85 in extended trading on Wednesday after the company announced a quarterly dividend of 43 cents per share, which will be paid on Nov. 15 to shareholders of record as of Oct. 23. The ex-dividend date is Oct. 22. The payment will be in line with the Aug. 15 distribution.

Based on Wednesday's closing price, the distribution produces a forward dividend yield of 2.38% versus the industry median of 2.29% and the S&P 500’s yield of 1.87%.

Colgate-Palmolive beats 469 out of a total of 931 companies operating in the consumer packaged goods industry in terms of a higher forward dividend yield.

The household and personal products company has continuously paid dividends since Feb. 15, 1986.

The trailing 12-month dividend per share grew 1.1% on average every year over the past five years.

The stock price has climbed 23% year to date to close at $72.85 on Wednesday, outperforming the S&P 500 by 3.3%. The 52-week range is $57.41 to $76.41.

The stock has a market capitalization of $62.51 billion and a price-sales ratio of 4.09.

According to the Peter Lynch chart, the stock is not cheap.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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