Bristol‑Myers Squibb: The Boring Dividend Stock I'd Happily Hold Through Any Crash
Key Points
Bristol Myers Squibb's stock has performed well so far this year, while the broader market has stumbled.
Although the drugmaker faces a patent cliff, its growth portfolio makes up over half of total revenue.
Bristol Myers Squibb's dividend is a big plus.
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Boring is beautiful. That adage is especially true during turbulent times. If you haven't noticed, the current market and world conditions are quite tumultuous.
In a highly volatile market, boring dividend stocks can be the ultimate defensive play. Bristol Myers Squibb (NYSE: BMY) is such a stock. It has delivered a double-digit year-to-date gain while the S&P 500 (SNPINDEX: ^GSPC) has fallen. I'd happily hold Bristol Myers Squibb through any crash.
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What about Bristol Myers Squibb's patent cliff?
Let's address what's probably the biggest objection about Bristol Myers Squibb -- its patent cliff. The company's two top-selling drugs, blood thinner Eliquis and cancer immunotherapy Opdivo, both lose patent exclusivity in 2028. Blood cancer drug Revlimid already faces generic competition.
However, Bristol Myers Squibb hasn't backed away from its challenges. The company's revenue continues to shift to its growth portfolio, which consists primarily of newer drugs. In 2025, this growth portfolio accounted for roughly 55% of total revenue, up from around 47% the previous year.
Bristol Myers Squibb also boasts a promising pipeline. The drugmaker expects to report results from pivotal clinical studies for 28 programs by the end of 2028. Half of these programs are new therapies, while the other half are potential new indications for already approved drugs.
The company has also completed several key acquisitions to bolster its growth prospects. For example, Bristol Myers Squibb purchased Orbital Therapeutics last year to gain access to its next-generation CAR-T therapy, OTX-201. In 2024, BMS acquired Karuna Therapeutics, adding the potential blockbuster neuroscience drug KarXT to its pipeline.
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Image source: Getty Images.
A stock that income investors should love
Bristol Myers Squibb's dividend is one of its biggest pluses. The company's forward dividend yield tops 4.2%. Bristol has paid a dividend for 94 consecutive years and has increased its dividend for 17 straight years.
If the stock market crashes, it will most likely be due to a geopolitical crisis (such as the current one involving Iran's blockade of the Strait of Hormuz), a perceived artificial intelligence (AI) bubble, or a sharp economic decline. Bristol Myers Squibb's business should hold up well in any of these scenarios. Physicians will continue prescribing the company's therapies, and patients will continue taking them regardless of what happens.
Is Bristol Myers Squibb a set-it-and-forget-it kind of stock? I wouldn't quite go that far. However, it is a dependable dividend payer that has survived and thrived over the long term. If the market crashes, this big pharmaceutical stock is one I'll be glad to have in my portfolio.
Should you buy stock in Bristol Myers Squibb right now?
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Keith Speights has positions in Bristol Myers Squibb. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
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