Becton Dickinson: Dividend Jewel – In The Service Of Medicine – Becton, Dickinson and Company (NYSE:BDX)

There are companies which usually do not attract the spotlight of the market and perform incredibly well without being widely followed or being constantly in the news. Becton Dickinson (BDX), a leading global medical technology company with a $44B market cap and profound growth metrics, is one of these jewels.

BDX data by YCharts

The company’s 10-year stock price chart is impressive, particularly since 2013.

Why is the New Jersey based company so successful?

Operating in the healthcare sector the company is providing all the necessary tools, equipment and devices, ranging from small-scale to large-scale items, to pharmacies, research labs, hospitals and pharmaceutical companies.

A big benefit for the company is that it is not subject to expiring patents on drugs and also not directly affected by the ongoing price discussions of prescription drugs in the US.

The items Becton Dickinson is providing include syringes, drain tubes, catheters but also surgical tools, laboratory equipment and software solutions, most notably the Rowa system, an automated medicine storage and retrieval system for pharmacies. The company has a strong moat in the latter and the system is operating in more than 7,000 pharmacies across more than 40 different countries.

This was a system the company basically gained access to via a $12B acquisition of CareFusion in October 2014. This acquisition has significantly driven the above depicted stellar stock performance.

And back in April 2017 the company surprised investors with an acquisition double the size of CareFusion: a $24 billion cash-and-stock deal of C.R. Bard Inc. (BCR) which aims at strengthening the company’s portfolio in the surgery and oncology sector. Moreover, it is expected to result in $300M in cost synergies by 2020. This was a major news for the stock and investors, particularly as the company has not made any significant headlines since it announced its earlier acquisition of CareFusion, almost 2.5 years ago.


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