5 Dividend Stocks to Buy Now Before Recession Begins

3. Bristol-Myers Squibb Company (NYSE:BMY)

Dividend Yield as of August 3: 2.95%

Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based multinational pharmaceutical company that delivers medicines to patients with serious conditions. The company performed really well during the pandemic as drug sales grew during that time period. Since the start of 2022, the stock has gained 18.4% and delivered a 5.7% return to shareholders in the past year, as of the market close of August 2.

Bristol-Myers Squibb Company (NYSE:BMY) reported solid Q2 2022 earnings, ending the quarter with cash and cash equivalents of over $10.7 billion. The company’s operating cash flow stood at over $2.2 billion and it generated nearly $2 billion in free cash flow during the quarter. Bristol-Myers Squibb Company (NYSE:BMY) raised its dividend for the 16th consecutive year in December 2021 and currently pays a quarterly dividend of $0.54 per share. It has a safe payout ratio of 70%. As of August 3, the stock’s dividend yield stood at 2.95%.

Appreciating the company’s latest quarterly earnings, JPMorgan raised its price target on Bristol-Myers Squibb Company (NYSE:BMY) in July to $85 and kept an Overweight rating on the shares.

At the end of Q1 2022, 70 hedge funds in Insider Monkey’s database held stakes in Bristol-Myers Squibb Company (NYSE:BMY), up from 66 in the previous quarter. These stakes are valued at over $2.4 billion.

Carillon Tower Advisers mentioned Bristol-Myers Squibb Company (NYSE:BMY) in its Q1 2022 investor letter. Here is what the firm has to say:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Bristol-Myers Squibb (NYSE:BMY), the biopharmaceutical company, entered into accelerated share repurchase agreements.”