Big Pharma Dividend Stock BMY Could Help Turn $100,000 Into a Seven‑Figure Retirement
Key Points
Bristol Myers Squibb is operating in the shadow of the hype surrounding GLP-1 drugs.
The company has an attractive and well-supported yield.
- 10 stocks we like better than Bristol Myers Squibb ›
The S&P 500 index (SNPINDEX: ^GSPC) is offering a tiny 1.1% dividend yield today. The average pharmaceutical stock yields around 1.7%. Bristol Myers Squibb (NYSE: BMY), however, is offering investors a yield of 4%. If you're a dividend investor looking to build a million-dollar nest egg, you might want to take a closer look at this drugmaker.
What does Bristol Myers Squibb do?
Bristol Myers Squibb is one of the world's largest pharmaceutical companies. The sector is very competitive, and the cost of developing novel drugs is extremely high. That said, Bristol Myers Squibb has a long and successful track record. However, right now, it isn't operating in the spotlight.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Investors are currently enamored of GLP-1 weight-loss drugs. There's a good reason for that, since weight loss is a huge market. However, Wall Street has a habit of getting myopically focused on one thing and ignoring other opportunities. Bristol Myers Squibb, for example, is focusing on cardiovascular, cancer, and immune-related medicines -- all very important healthcare opportunities.
Bristol Myers Squibb is facing normal headwinds
The stock is roughly 25% below its late 2022 highs, which is part of the attraction. There's still some recovery opportunity to go along with a well-above-average dividend yield. The payout ratio is around 70%, which is not so high that investors should be overly concerned. The company has a long history of regularly increasing its dividend, and when times are tough, the board of directors keeps dividends steady.
Bristol Myers Squibb's Opdivo cancer drug will lose patent protection in 2028. It's an important medication, and investors are concerned. However, the company is working on a different delivery method for Opdivo, which could extend its patent protections. And there are other drugs in the development pipeline as well.
It's important to recognize that patent expirations are a normal part of a drug company's business. Bristol Myers Squibb has proven over time that it can deal with them as they come along.
A foundation for growth
The big opportunity here is buying an out-of-favor stock while it offers a relatively high yield, and letting it compound through dividend reinvestment. That's how this stock can help you turn $100,000 into a $1 million retirement nest egg.
Bristol Myers Squibb shouldn't be the only stock you buy, but it can provide a strong foundation for a more diversified portfolio. Essentially, owning this reliable dividend stock can let you take on more risk elsewhere.
Should you buy stock in Bristol Myers Squibb right now?
Before you buy stock in Bristol Myers Squibb, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristol Myers Squibb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 28, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
Recommended Articles
