Becton Dickinson dividend growth slows to 4.4% in 2023
Dividend Aristocrat Becton Dickinson announced a new quarterly dividend of $0.95 per share, marking 52 straight years of increased dividends. The dividend growth however keeps slowing for the medical devices maker.
Becton Dickinson, a global medical technology company making products including syringes, needles, insulin delivery systems, diagnostic equipment, bioscience tools, preanalytical systems, infection prevention solutions, and surgical/interventional products, was dumped by investors Yesterday with a 9.3% loss for the stock because of a worse than expected Q4 profit together with a lowered outlook for FY 2024 with an expected adjusted profit of $12.70 to $13.00 per share versus the average analyst consensus of $13.50.
DIVIDEND RAISED 52 CONSECUTIVE YEARS WITH SLOWING GROWTH
The Board of Directors Becton Dickinson declared a quarterly dividend of $0.95 per common share, an increase of 4.4% from the previous quarter. The dividend will be payable on December 29, 2023 to holders of record on December 8, 2023. The indicated annual dividend rate for fiscal year 2024 is $3.80 per share yielding 1.64% at a stock price of $232.24. Last year the dividend was hiked by a higher 4.6%.
"This is the 52nd consecutive fiscal year in which we have raised our dividend, maintaining BD's membership in the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends for at least 25 consecutive years," said Tom Polen, chairman, CEO and president of BD. "This increase reflects our confidence in our long-term outlook, as well as our ongoing commitment to create value through execution of our BD 2025 strategy and return capital to shareholders."
Dividend growth has been slowing the last two years, with a 4.6% dividend hike in 2022 and a 4.8% increase in 2021 and a 5.1% dividend hike in 2020. The last double digit dividend hike dates back to 2016, when Becton announced a 10.6% dividend increase. The company will now pay an estimated $1.08 billion in dividends to shareholders annually.
Another Dividend Aristocrat, ADP, hiked its dividend by double digits earlier this week.
Becton Dickinson is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. Products include syringes, needles, insulin delivery systems, diagnostic equipment, bioscience tools, preanalytical systems, infection prevention solutions, and surgical/interventional products.