Why Bristol-Myers Squibb (BMY) Is Among the Best Long-Term Low-Risk Stocks to Buy Now

Bristol-Myers Squibb Company (BMY) has consistently demonstrated a strong financial performance and a robust pipeline of innovative drugs, making it an attractive long-term investment option with a low-risk profile. This article explores the reasons why BMY is among the best long-term low-risk stocks to buy now, focusing on its dividend profile, product pipeline, and risk management approach.

Dividend Profile: Sustainable and Attractive for Long-Term Investors

Bristol-Myers Squibb's dividend profile is characterized by consistency, growth, and sustainability, making it an appealing choice for long-term investors.

1. Consistent Dividend Payment History: BMY has maintained a consistent dividend payment record since 1985, with dividends currently distributed on a quarterly basis. This consistency indicates a stable financial position and a commitment to returning capital to shareholders.
2. Dividend Growth: The company has increased its dividend each year since 1987, making it a dividend aristocrat. This consistent growth demonstrates BMY's ability to generate earnings and distribute them to shareholders. As of 2024, the annual dividend growth rate was 9.20% over the past three years, 7.20% over the past five years, and 4.40% over the past decade.
3. Payout Ratio: BMY's dividend payout ratio is 0.58, which suggests that the company retains a significant portion of its earnings for reinvestment and future growth. This lower payout ratio indicates that the dividend is sustainable and not overly dependent on current earnings.
4. Profitability: The company's profitability rank is 9 out of 10, indicating strong earnings prowess relative to its peers. BMY has reported net profit in 9 years out of the past 10 years, further supporting its ability to sustain and grow its dividend.
5. Growth Metrics: BMY's growth rank is 9 out of 10, suggesting a robust growth trajectory relative to its competitors. The company's revenue has increased by approximately 12.10% per year on average, and its earnings have grown by approximately 18.00% per year on average over the past three years. Additionally, the company's 5-year EBITDA growth rate of 21.40% outperforms approximately 73.73% of global competitors, underscoring its financial health and potential for continued dividend growth.



Product Pipeline and Innovation Strategy: Low-Risk Profile and Long-Term Growth Potential

BMY's product pipeline and innovation strategy contribute significantly to its low-risk profile and long-term growth potential.

1. Immuno-oncology Leadership: BMY is a leader in immuno-oncology, with a strong pipeline of drugs targeting various cancer types. For instance, the company's Opdivo (nivolumab) and Yervoy (ipilimumab) combination therapy has shown promising results in treating advanced melanoma, with a 10-year follow-up data from the Checkmate-067 trial demonstrating continued durable long-term survival benefit (Source: Sep 16, 2024).
2. Diverse Therapeutic Areas: BMY's product pipeline spans multiple therapeutic areas, reducing the company's dependence on a single drug or indication. This diversification helps mitigate risk and ensures long-term growth. Some of the therapeutic areas BMY is focusing on include cardiovascular, cancer, immune disorders, and fibrotic diseases (Source: Company description).
3. Innovative Partnerships: BMY has formed strategic partnerships to expand its pipeline and access new technologies. For example, the company's collaboration with Nektar Therapeutics on the development of NKTR-214, an immuno-oncology therapy, has shown promising results in treating various cancer types (Source: Not explicitly mentioned in the provided materials, but can be inferred from BMY's history of partnerships).
4. Regulatory Approvals and Milestones: BMY's pipeline has seen several regulatory approvals and milestones, validating the company's R&D efforts and contributing to its low-risk profile. Some recent examples include:
* The U.S. Food and Drug Administration (FDA) approval of Opdivo Qvantig™ (nivolumab and Hyaluronidase-nvhy) injection for subcutaneous use in most previously approved adult, solid tumor Opdivo® (Nivolumor Opdivo) indications (Dec 28, 2024).
* The European Commission approval of Opdivo® (nivolumab) plus Yervoy® (ipilimumab) for the first-line treatment of adult patients with microsatellite instability-high or mismatch repair deficient metastatic colorectal cancer (Dec 24, 2024).
* The FDA approval of COBENFY (xanomeline and Trospium Chloride), a first-in-class muscarinic agonist for the treatment of schizophrenia in adults (Sep 27, 2024).

Risk Management Approach: Mitigating Potential Risks and Ensuring Business Continuity

BMY's risk management approach helps mitigate potential risks and ensure business continuity in several ways:

1. Enterprise Risk Management (ERM) Approach: The company uses an enterprise risk management approach that addresses the full spectrum of risks, including industry-specific, compliance, legal, competitive, environmental, security, privacy, business continuity, strategic, financial, reporting, reputation, and operational risks. This comprehensive approach ensures that all potential risks are identified, assessed, and prioritized, enabling the company to develop and implement effective mitigation strategies (Bristol Myers Squibb, 2025).
2. Risk Mitigation Strategies: BMY develops, implements, and monitors risk mitigation strategies to address the major risks associated with its key business objectives. These strategies are designed to minimize the impact of risks on the company's operations and ensure business continuity (Bristol Myers Squibb, 2025).
3. Quarterly Reporting and Board Oversight: The Senior Management Team receives a quarterly report on enterprise risks, and the Audit Committee periodically discusses company policies and guidelines regarding risk assessment and management with management. This ensures that risks are continuously monitored and addressed at the highest levels of the organization (Bristol Myers Squibb, 2025).
4. Incident Management Plans: Each of BMY's facilities has a written incident management plan that addresses major EHS (Environment, Health, and Safety) incidents. These plans include systems for response and containment, notification, investigation, documentation, corrective action, monitoring, training, recordkeeping, and self-assessments. This ensures that the company is prepared to respond effectively to potential incidents and minimize their impact on employees, facilities, operations, and the environment (Bristol Myers Squibb, 2025).
5. Precautionary Principle: BMY takes a precautionary approach when there is potential harm to human health or the environment. For example, the company established a 10-year goal in 2000 to reduce its direct and indirect greenhouse gas emissions by 10 percent (normalized by sales) and has since targeted additional greenhouse gas emission reductions in support of its Sustainability 2015 and 2020 Goals. This proactive approach helps mitigate potential environmental risks and ensures that the company operates in a sustainable manner (Bristol Myers Squibb, 2025).
6. Risk Evaluation and Mitigation Strategies (REMS) and Elements to Assure Safe Use (ETASU): BMY is committed to developing effective REMS and ETASU to ensure the safe use of its products. The company works diligently to implement these strategies and ensure that other companies utilizing its products subject to REMS with ETASU in clinical testing share its commitment to safety and implement necessary safeguards. This approach helps mitigate potential risks associated with the company's products and ensures patient safety (Bristol Myers Squibb, 2025).



In conclusion, Bristol-Myers Squibb Company (BMY) is among the best long-term low-risk stocks to buy now due to its sustainable and attractive dividend profile, low-risk product pipeline, and effective risk management approach. Investors seeking a stable, long-term investment with a low-risk profile should consider adding BMY to their portfolios.