Becton Dickinson: A Dividend King Facing Challenges Offers Undervalued Value with 2.5% Yield

Becton, Dickinson and Company, a leading provider of medical supplies, has a nearly 2.5% dividend yield, the highest in over a decade. The company is undervalued and has excellent dividend safety. It operates in various markets including life sciences, infusion, diagnostics, and others. Despite facing challenges, BDX offers value to investors.

Becton, Dickinson and Company (BDX), a leading provider of medical supplies, has recently captured investor attention due to its nearly 2.5% dividend yield, the highest in over a decade. This high yield, coupled with strong dividend safety, positions BDX as an attractive option for income-focused investors despite facing recent challenges.

BDX operates in various markets, including life sciences, infusion, diagnostics, and others, providing a broad range of medical supplies, devices, laboratory equipment, and diagnostic products worldwide. The company's dividend yield of 2.44% [1] [2] indicates a significant income stream for investors. To generate $100 per month from BDX dividends, an investment of approximately $49,180 is required, which equates to around 288 shares at the current price of $170.66 each [1] [2].

The company's recent earnings report for the second quarter of 2025 revealed an adjusted EPS of $3.35, beating the consensus estimate of $3.28, while revenues of $5.27 billion came in below the consensus of $5.35 billion [1] [2]. Despite these mixed results, analysts at Stifel have maintained their Buy rating on BDX shares with a price target of $224 [3]. The analysts expressed renewed confidence in the company's prospects following a recent investor lunch with top executives, who addressed the challenges and provided a positive outlook for future growth.

The separation of the Biosciences & Diagnostic Solutions division is a significant event for BDX, closely watched by investors. The company reassured that the evaluation process for this transaction is progressing as planned. Analysts believe that BDX has the capacity to navigate through the current challenges and emerge with stronger fundamentals [3].

In conclusion, while BDX faces macroeconomic challenges and a mixed fiscal second quarter, its high dividend yield and strong dividend safety make it an attractive option for income-focused investors. The company's broad market presence and consistent dividend hikes over the last 53 years further enhance its appeal. However, investors should closely monitor the company's progress in navigating the current challenges and the separation of its Biosciences & Diagnostic Solutions division.

References:
[1] https://finance.yahoo.com/news/heres-earn-100-passive-income-120055995.html
[2] https://www.benzinga.com/markets/25/06/45829062/heres-how-you-can-earn-100-in-passive-income-by-investing-in-becton-dickinson-stock
[3] https://www.investing.com/news/analyst-ratings/stifel-maintains-becton-dickinson-stock-with-a-224-target-93CH-4086698