Analysis – Becton, Dickinsin and Company Increases Dividend by 10%

BDX

Becton, Dickinson and Company announced a regular quarterly dividend of $0.66, a 10 percent increase from the prior rate of $0.60 per share. The dividend will be paid at the new higher rate on December 31, 2015, to shareholders of record at close of business on December 10, 2015. Becton, Dickinson and Company is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
12/10/2015 0.66
9/4/2015 0.6
6/5/2015 0.6
3/6/2015 0.6
12/8/2014 0.6
9/5/2014 0.545
6/5/2014 0.545
3/6/2014 0.545
12/6/2013 0.545
9/5/2013 0.495
6/5/2013 0.495
3/6/2013 0.495
12/6/2012 0.495
9/5/2012 0.45
6/6/2012 0.45
3/7/2012 0.45
12/8/2011 0.45
9/7/2011 0.41
6/7/2011 0.41
3/8/2011 0.41
12/8/2010 0.41
9/7/2010 0.37
6/7/2010 0.37
3/8/2010 0.37

Analysis of Valuation of Becton, Dickinson and Company (Symbol BDX).

Becton Dickinson is trading below its price/sale (P/S) range.  Becton Dickinson is trading below its average historical dividend yield. 

Price 11/24/15 % Yield 5 Year Div. Growth Rate SPS   2015 P/S Ratio 10 yr P/S Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$150.55 1.74% 9% 49.55 2.79 2.65 3.29 2.42% 1.52%

BDX2

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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